SEC Votes to Close Down Non Y2K-Compliant Brokerages.
The SEC says the move was made because the lack of readiness by a few firms could have adverse consequences for countless others. Still, it estimates that only about 1% of the 3,900 brokerage houses covered by the new rules will fail to achieve Y2K compliance in a timely manner. The vast majority have already passed tests carried out by the Securities Industry Association earlier this year and only about 50 firms are expected to miss the August deadline.
Any companies that run afoul of the new rules would be required to transfer customer accounts and assets to a compliant firm. The SEC said it wouldn't oversee such transfers, but instead expects compliant firms to solicit the accounts themselves. Publicly- traded companies have been required by the SEC since 1997 year to disclose information about their Y2K readiness as well as detailed accounts of the costs associated with Y2K-related work.
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|Date:||Jul 28, 1999|
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