Lost, Stolen, or Counterfeit Securities

What this video covers

• The difference between the Securities and Exchange Commission (SEC) and the Securities Information Center (SIC), and why reports flow to the SIC as the SEC's designee
• Which institutions qualify as reporting institutions under the rule, including the exam gotcha that transfer agents have identical obligations to broker-dealers (BDs) and banks
• The four reportable conditions: missing or lost after diligent search, stolen, counterfeit, and lost in transit
• Form X-17F-1A filing requirements and the three concurrent reporting paths: SIC, transfer agent, and Federal Bureau of Investigation (FBI) for criminal activity
• The $10,000 inquiry threshold and the correct sequence: receive first, then query within five business days, then sell, pledge, or forward
• Why skipping the SIC inquiry creates independent liability even when the certificate turns out to be perfectly legitimate
• How exam writers construct side-by-side outcome questions where a stolen certificate produces two separate violations