Sipc 6 Form PDF Details

Understanding the complexities of financial reporting and compliance within the securities industry can be daunting, and one critical element in this landscape is the SIPC-6 form. Managed by the Securities Investor Protection Corporation (SIPC), the SIPC-6 form plays a pivotal role for members in the first half of the fiscal year. It is designed to facilitate the calculation and payment of general assessments, capturing key details such as member information, assessment calculations, interest on late payments, and information regarding subsidiaries and predecessors. The form also outlines specific inclusions and exclusions in determining "SIPC Net Operating Revenues," an essential figure for the calculation of assessments due. Upon completion, this form, alongside the required payment, is submitted to the SIPC, ensuring members' compliance with the investor protection standards set. The meticulous details required highlight the importance of accuracy and completeness in safeguarding not only the integrity of the financial markets but also the interests of investors across sectors. With penalties in place for late submissions, including significant interest rates, the value placed on timely and accurate reporting through the SIPC-6 form is unmistakeable, reinforcing its significance within the regulatory framework governing securities investment protection.

QuestionAnswer
Form NameSipc 6 Form
Form Length4 pages
Fillable?No
Fillable fields0
Avg. time to fill out1 min
Other namessipc 6 working copy, sipc 6 non working, sipc form 6, sipc 6 2019

Form Preview Example

SIPC-6

 

SECURITIES INVESTOR PROTECTION CORPORATION

 

SIPC-6

 

 

 

202 - 371 - 8300

 

 

 

 

 

 

 

P . O . Box 92185 Washington, D . C . 20090 - 2185

 

 

 

 

 

(34 - REV 7/10)

 

General assessment Payment form

 

 

 

 

(34 - REV 7/10)

 

 

for the first half of the fiscal year ending

 

, 20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Read carefully the instructions in your Working Copy before completing this Form)

To be filed by all members of THe seCUriTies iNVesTor ProTeCTioN CorPoraTioN

1 . Name of Member, address, Designated Examining Authority, 1934 Act registration no . and month in which fiscal year ends for purposes of the audit requirement of SEC Rule 17a - 5:

Note: If any of the information shown on the mailing label requires correction, please e - mail any corrections to form@sipc . org and so indicate on the form filed .

Name and telephone number of person to contact respecting this form .

WORKING COPY

2 . A . General assessment payment for the first half of the fiscal year

$

 

(item 2e from page 2)

 

 

 

1

. Less prior year overpayment applied as reflected on SIPC - 7 if applicable

(

 

)

2

. Assessment balance due

 

 

 

 

 

B . Interest computed on late payment (see instruction E) for ______ days at 20% per annum

$

 

 

C . Total assessment and interest due

 

 

 

 

D . PAID WITH THIS FORM:

 

 

 

 

 

Check enclosed, payable to SIPC

 

 

 

 

 

Total (must be same as C above)

$

 

 

 

 

3 . Subsidiaries (S) and predecessors (P) included in this form (give name and 1934 Act registration number):

The SIPC member submitting this form and the person by whom it is executed represent thereby that all information contained herein is true, correct and complete .

(Name of Corporation, Partnership or other organization)

Dated the

 

day of

 

, 20

 

.

(Authorized Signature)

(Title)

This form and the assessment payment is due 30 days after the end of the first six months of the fiscal year . retain the Working Copy of this form for a period of not less than 6 years, the latest 2 years in an easily accessible place .

SIPC REVIEWER

Dates:

Postmarked

Calculations

Exceptions:

Disposition of exceptions:

ReceivedReviewed

Documentation

 

Forward Copy

1

deTermiNaTioN of “siPC NeT oPeraTiNG reVeNUes”

aNd GeNeral assessmeNT

item No.

2a. Total revenue (FOCUS Line 12/Part IIA Line 9, Code 4030)

2b. Additions:

(1)Total revenues from the securities business of subsidiaries (except foreign subsidiaries) and predecessors not included above.

(2)Net loss from principal transactions in securities in trading accounts .

(3)Net loss from principal transactions in commodities in trading accounts.

(4)Interest and dividend expense deducted in determining item 2a .

(5)Net loss from management of or participation in the underwriting or distribution of securities .

(6)Expenses other than advertising, printing, registration fees and legal fees deducted in determining net profit from management of or participation in underwriting or distribution of securities.

(7)Net loss from securities in investment accounts.

Total additions

2c. Deductions:

(1)Revenues from the distribution of shares of a registered open end investment company or unit investment trust, from the sale of variable annuities, from the business of insurance, from investment advisory services rendered to registered investment companies or insurance company separate accounts and from transactions in security futures products.

(2)Revenues from commodity transactions.

(3)Commissions, floor brokerage and clearance paid to other SIPC members in connection with securities transactions.

(4)Reimbursements for postage in connection with proxy solicitation.

(5)Net gain from securities in investment accounts.

(6)100% of commissions and markups earned from transactions in (i) certificates of deposit and

(ii)Treasury bills, bankers acceptances or commercial paper that mature nine months or less from issuance date.

(7)Direct expenses of printing, advertising and legal fees incurred in connection with other revenue related to the securities business (revenue defined by Section 16(9)(L) of the Act).

(8)Other revenue not related either directly or indirectly to the securities business.

(See Instruction C):

(9)(i) Total interest and dividend expense (FOCUS Line 22/PART IIA Line 13, Code 4075 plus line 2b(4) above) but not in excess

of total interest and dividend income

$

Amounts for the fiscal period

 

beginning

 

,

20

 

 

and ending

 

,

20

 

 

 

 

 

eliminate cents

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(ii) 40% of margin interest earned on customers securities

$

 

 

 

accounts (40% of FOCUS line 5, Code 3960)

 

 

 

Enter the greater of line (i) or (ii)

 

 

 

 

Total deductions

 

 

 

2d

. SIPC Net Operating Revenues

$

2e

. General Assessment @ .0025

$

(to page 1, line 2.A.)

2

siPC - 6 instructions

This form is to be filed by all members of the Securities Investor Protection Corporation for the first half of each fiscal year, due no later than 30 days after the end of that period . At the end of your fiscal year, you will receive a SIPC - 7, General Assessment Reconciliation Form, which will be based upon the total revenue reported in your Securities and Exchange Commission Rule 17a - 5 annual audited statement of income . There will be a place on that form to deduct the SIPC - 6 assessment paid . Questions pertaining to this form should be directed to SIPC via e - mail at form@sipc . org or by calling 202 - 371 - 8300 .

A . For the purposes of this form, the term “SIPC Net Operating Revenues” shall mean gross revenues from the securities business as defined in or pursuant to the applicable sections of the Securities Investor Protection Act of 1970 (“Act ”) and Ar ticle 6 of SIPC’s bylaws (see page 4), less item 2c(9) on page 2.

B. Gross revenues of subsidiaries, except foreign subsidiaries, are required to be included in SIPC Net Operating Revenues on a consolidated basis except for a subsidiar y filing separately as explained hereinaf ter.

If a subsidiar y was required to file a Rule 17a- 5 annual audited statement of income separately and is also a SIPC member, then such subsidiar y must itself file SIPC - 6, pay the assessment, and should not be consolidated in your SIPC - 6 .

SIPC Net Operating Revenues of a predecessor member which are not included in item 2a, were not repor ted separately and the SIPC assessments were not paid thereon by such predecessor, shall be included in item 2b(1).

C.Your General Assessment should be computed as follows:

(1) Li n e 2a For the fiscal period enter total revenue based upon amounts repor ted in your Rule 17a- 5 Annual Audited Statement of Income prepared in conformity with generally accepted accounting principles applicable to securities brokers and dealers, or if exempted from that rule, use X-17A- 5 (FOCUS Repor t) Line 12, Code 4030.

(2) A d j u stm ents The purpose of the adjustments on page 2 is to determine SIPC Net Operating Revenues.

(a)A d d iti o n s Lines 2b(1) through 2b(7) assure that assessable income and gain items of SIPC Net Operating Revenues are totaled, unreduced by any losses (e.g., if a net loss was incurred for the period from all transactions in trading account securities, that net loss does not reduce other assessable revenues).

Thus, line 2b(4) would include all shor t dividend and interest payments including those incurred in reverse conversion accounts, rebates on stock loan positions and repo interest which have been net ted in determining line 2(a).

(b)De d u c ti o n s Line 2c(1) through line 2c(9) are either provided for in the statute, as in deduction 2c(1), or are allowed to arrive at an assessment base consisting of net operating revenues from the securities business . For example, line 2c(9) allows for a deduction of either the total interest and dividend expense (not to exceed interest and dividend income), as repor ted on FOCUS line 22/PART 11A Line 13 (Code 4075), plus line 2b(4) or 40% of interest earned on customers’ securities accounts (40% of FOCUS Line 5 Code 3960). Be cer tain to complete both line (i) and (ii), entering the greater of the t wo in the far right column. Dividends paid to shareholders are not considered “Expense” and thus are not to be included in the deduction. Likewise, interest and dividends paid to par tners pursuant to

par tnership agreements would also not be deducted.

If

th e a m o u n t

re p o r te d

o n l i n e 2c

(8) a g g re g ate s

t o

$10 0,0 0 0 o r

g re ate r,

s u p p o r t i n g

d o c u m e n tat i o n

m u s t a c c o m p a ny th e fo r m th at i d e n t i fi e s th e s e d e d u c t i o n s . E xa m p l e s o f s u p p o r t i n fo r m at i o n i n c l u d e; c o n tra c t u a l a g re e m e n t s , p ro s p e c t u s e s , a n d l i m i te d p a r tn e r s h i p d o c u m e n tat i o n .

(i)Determine your SIPC Net Operating Revenues, item 2d, by adding to item 2a, the total of item 2b, and deducting the total of item 2c .

(ii)Multiply the SIPC Net Operating Revenues by the applicable rate. Enter the resulting amount in item 2e and on line 2A of page 1.

(iii)Enter interest computed on late payment (if applicable) on line 2B.

(iv)Enter the total due on line 2C and the payment of the amount due on line 2D.

D. Any SIPC member which is also a bank (as defined in the Securities Exchange Act of 1934) may exclude from SIPC Net Operating Revenues dividends and interest received on securities in its investment accounts to the ex tent that it can demonstrate to SIPC’s satisfaction that such securities are held, and such dividends and interest are received, solely in connection with its operations as a bank and not in connection with its operations as a broker, dealer or member of a national securities exchange. Any member who excludes from SIPC Net Operating Revenues any dividends or interest pursuant to the preceding sentence shall file with this form a supplementar y statement set ting for th the amount so excluded and proof of its entitlement to such exclusion.

E. Intere st o n As s e s sm ents. If all or any par t of an assessment payable under Section 4 of the Act has not been postmarked within 15 days af ter the due date thereof, the member shall pay, in addition to the amount of the assessment, interest at the rate of 20% per annum on the unpaid por tion of the assessment for each day it has been overdue.

mail this completed form to siPC together with a check for the amount due, made payable to siPC, using the enclosed return Po boX envelope . if you would like to wire the assessment payment please fax

acopy of the assessment form to (202) - 371 - 6728 or e - mail a copy to form@sipc . org and request

wire instructions .

3

from section 16(9) of the act:

The term “gross revenues from the securities business” means the sum of (but without duplication) —

(A)commissions earned in connection with transactions in securities effected for customers as agent (net of commissions paid to other brokers and dealers in connection with such transactions) and markups with respect to purchases or sales of securities as principal;

(B)charges for executing or clearing transactions in securities for other brokers and dealers;

(C)the net realized gain, if any, from principal transactions in securities in trading accounts;

(D)the net profit, if any, from the management of or participation in the underwriting or distribution of securities;

(E)interest earned on customers’ securities accounts;

(F)fees for investment advisory services (except when rendered to one or more registered investment companies or

insurance company separate accounts) or account supervision with respect to securities;

(G)fees for the solicitation of proxies with respect to, or tenders or exchanges of, securities;

(H)income from service charges or other surcharges with respect to securities;

(I)except as otherwise provided by rule of the Commission, dividends and interest received on securities in investment accounts of the broker or dealer;

(J)fees in connection with put, call, and other options transactions in securities;

(K)commissions earned for transactions in (i) certificates of deposit, and (ii) Treasury bills, bankers acceptances, or commercial paper which have a maturity at the time of issuance of not exceeding nine months, exclusive of days of grace, or any renewal thereof, the maturity of which is likewise limited, except that SIPC shall by bylaw include in the aggregate of gross revenues only an appropriate percentage of such commissions based on SIPC’s loss experience with respect to such instruments over at least the preceding five years; and

(L)fees and other income from such other categories of the securities business as SIPC shall provide by bylaw .

Such term includes revenues earned by a broker or dealer in connection with a transaction in the portfolio margining account of a customer carried as securities accounts pursuant to a portfolio margining program approved by the Commission . Such term does not include revenues received by a broker or dealer in connection with the distribution of shares of a registered open end invest - ment company or unit investment trust or revenues derived by a broker or dealer from the sales of variable annuities, the busi - ness of insurance, or transactions in security futures products .

from section 16(14) of the act:

The term “Security” means any note, stock, treasury stock, bond, debenture, evidence of indebtedness, any collateral trust certificate, preorganization certificate or subscription, transferable share, voting trust certificate, certificate of deposit, certificate of deposit for a security, or any security future as that term is defined in section 78c(a)(55)(A) of this title, any investment contract or certificate

of interest or participation in any profit - sharing agreement or in any oil, gas or mineral royalty or lease (if such investment contract or interest is the subject of a registration statement with the Commission pursuant to the provisions of the Securities Act of 1933 [15 U . S . C . 77a et seq . ]), any put, call, straddle, option, or privilege on any security, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, any certificate of interest or participation in , temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase or sell any of the foregoing, and any other instrument commonly known as a secu - rity . Except as specifically provided above, the term “security” does not include any currency, or any commodity or related contract or futures contract, or any warrant or right to subscribe to or purchase or sell any of the foregoing .

from siPC bylaw article 6 (assessments): section 1(f):

The term “gross revenues from the securities business” includes the revenues in the definition of gross revenues from the securities business set forth in the applicable sections of the Act .

section 3:

For purpose of this article:

(a)The term “securities in trading accounts” shall mean securities held for sale in the ordinary course of business and not identified as having been held for investment .

(b)The term “securities in investment accounts” shall mean securities that are clearly identified as having been acquired for investment in accordance with provisions of the Internal Revenue Code applicable to dealers in securities .

(c)The term “fees and other income from such other categories of the securities business” shall mean all revenue related either directly or indirectly to the securities business except revenue included in Section 16(9)(A) - (L) and revenue specifically excepted in Section 4(c)(3)(C)[Item 2c(1), page 2] .

Note: If the amount of assessment entered on line 2e of SIPC - 6 is greater than 1/2 of 1% of “gross revenues from the securities business” as defined above, you may submit that calculation along with the SIPC - 6 form to SIPC and pay the smaller amount, subject to review by your Examining Authority and by SIPC .

SIPC Examining Authorities:

 

 

 

ASE

American Stock Exchange, LLC

 

FINRA

Financial Industry Regulatory Authority

CBOE

Chicago Board Options Exchange, Incorporated

 

NYSE, Arca, Inc .

CHX

Chicago Stock Exchange, Incorporated

4

NASDAQ OMX PHLX

 

 

SIPC

Securities Investor Protection Corporation

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1. Start filling out your sipc 6 2019 with a group of essential blanks. Get all of the important information and ensure nothing is neglected!

Completing part 1 of how to fill out a sipc 6

2. Once your current task is complete, take the next step – fill out all of these fields - Assessment balance due, Interest computed on late payment, C Total assessment and interest due, D PAID WITH THIS FORM, Check enclosed payable to SIPC, Subsidiaries S and predecessors P, The SIPC member submitting this, Dated the day of, Name of Corporation Partnership or, Authorized Signature, Title, This form and the assessment, and Dates with their corresponding information. Make sure to double check that everything has been entered correctly before continuing!

Completing part 2 of how to fill out a sipc 6

3. In this step, look at aNd GeNeral assessmeNT, item No a Total revenue FOCUS Line, Amounts for the fiscal period, b Additions, Total revenues from the, predecessors not included above, Net loss from principal, Net loss from principal, Interest and dividend expense, Net loss from management of or, Expenses other than advertising, profit from management of or, Net loss from securities in, Total additions, and c Deductions. These should be taken care of with highest accuracy.

how to fill out a sipc 6 completion process clarified (portion 3)

4. The next part requires your input in the following areas: c Deductions, Revenues from the distribution of, investment trust from the sale of, Revenues from commodity, Commissions floor brokerage and, securities transactions, Reimbursements for postage in, Net gain from securities in, of commissions and markups, Direct expenses of printing, related to the securities business, Other revenue not related either, See Instruction C, i Total interest and dividend, and Code plus line b above but not in. Just be sure you give all of the required information to move onward.

See Instruction C, securities transactions, and Commissions floor brokerage and inside how to fill out a sipc 6

As for See Instruction C and securities transactions, be certain you don't make any errors in this section. Both of these are surely the most significant fields in the form.

5. To wrap up your document, the final area features several extra fields. Entering Enter the greater of line i or ii, Total deductions, d SIPC Net Operating Revenues, e General Assessment, and to page line A will finalize everything and you'll be done very fast!

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