Amendments to Regulations for the Government Securities Act of 1986

The Department of the Treasury (``Department'') is publishing, as a final rule, amendments to the financial responsibility rules in part 402 and a conforming amendment to a recordkeeping requirement in part 404 of the regulations issued under the Government Securities Act of 1986 (``GSA''). The amendments raise the minimum capital requirements for all government securities brokers and dealers subject to the requirements of Sec. 402.2 and establish a written notification requirement for certain withdrawals of capital. The amendments parallel the Securities and Exchange Commission's (``SEC'') final and proposed amendments to the minimum net capital requirements for brokers and dealers subject to the requirements of 17 CFR 240.15c3-1 (Rule 15c3-1) and final rules regarding the withdrawal of capital. The Department is adopting the amendments unchanged from their proposed form.