2026-03871NoticeWallet

SEC Grants Paperwork Breaks to Small Broker-Dealers Under $1B Assets

Published Date: 2/26/2026

Notice

Summary

This update lets smaller broker-dealers—those with less than $100 million in capital and under $1 billion in total assets—skip some complicated paperwork and reporting rules. It helps these smaller players focus on their business without extra hassle, starting right away. If you’re a small broker-dealer, this means less red tape and more time to grow your business!

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Large Broker-Dealers Remain Supervised

Broker-dealers that have capital of $100 million or more or total assets of $1 billion or more remain subject to Rules 17h-1T and 17h-2T. The Commission states that broker-dealers above those thresholds and certain other supervised firms represent approximately 97% of total broker-dealer capital, and the Order keeps those firms under existing oversight.

Relief for Small Non-Carrying Broker-Dealers

If you are a non-carrying broker-dealer that does not hold customer funds or carry customer accounts, you are now exempt from Rule 17h-1T recordkeeping requirements and quarterly Form 17-H filings if you maintain total assets of less than $1 billion (FOCUS Report line 940) and capital of at least $20 million but less than $100 million (FOCUS Report line 3530). The Commission raised the capital threshold from $50 million to $100 million, which will relieve about 35 broker-dealers — roughly 14% of the approximately 244 broker-dealers then subject to these rules — from those requirements.

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Key Dates

Published Date
2/26/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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