Refer to the full details of the exemptive provisions under paragraph (k) of Rule 15c3-3. (k)(3) – This paragraph is reserved for a broker dealer that does not fall under one of the other exemption provisions but has submitted a written application to the SEC and has been approved to otherwise receive an exemptive status.(k)(2)(ii) – This exemption applies to a broker dealer that does all business through a clearing firm on a fully disclosed basis.This exemption has been commonly used as a default for broker dealers that do not fit under one of the other exemption provisions. (k)(2)(i) – This exemption applies to a broker dealer that carries no margin accounts, promptly transmits all customer funds received and does not otherwise hold funds or securities for customers and effectuates all financial transactions with customers through one or more bank accounts designated as a special account for the exclusive benefit of customers.(k)(1) – This is a very limited and restrictive business model reserved for a broker dealer that is involved solely in direct mutual fund or variable annuity business.

These paragraph (k) exemptions include the following: Traditionally, broker dealers that have claimed exemption under Rule 15c3-3 have done so under paragraph (k) of the Rule, even if the nature of their business did not fall directly under one of the exemptions listed in the paragraph. This updated guidance changes the way that many broker-dealers will maintain their exemptive status under Rule 15c3-3. The Securities Exchange Commission (SEC) recently published updated guidance concerning the exemptive provisions of the broker-dealer reporting rule. Changes for Broker Dealers in Maintaining Exemptive Status Under Rule 15c3-3

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