; and (C) throughout the most recently completed fiscal year of the broker or dealer— (i) does not, as a matter of ordinary business practice in connection with the activities of the broker or dealer, receive customer checks, drafts, or other evidence of indebtedness made payable to the broker or dealer; (ii) if required under section 3(a)(2) of the Securities Investor Protection Act of 1970 ( 15 U.S.C. 78ccc(a)(2) ), is a member of the Securities Investor Protection Corporation; and (iii) either— (I) if the broker or dealer is subject to section 240.15c3–3 of title 17, Code of Federal Regulations, or any successor regulation, is in compliance with that section; or (II) is not subject to such section 240.15c3–3, or any successor regulation, because the broker or dealer does not maintain custody over any customer securities or cash. (7) Privately held The term privately held means, with respect to a broker or dealer (as those terms are defined in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) )), that the broker or dealer, as applicable, is not an issuer. . (b) Amendments to regulations (1) Definitions In this subsection, the terms in good standing , non-custody broker or dealer , and privately held have the meanings given the terms in section 110 of the Sarbanes-Oxley Act of 2002 ( 15 U.S.C. 7220 ), as amended by subsection (a). (2) Amendments Not later than 180 days after the date of enactment of this Act, the Securities and Exchange Commission shall make any necessary amendments to regulations of the Commission that are in effect as of the date of enactment of this Act in order to— (A) carry out this Act and the amendments made by this Act; and (B) exclude the auditors of non-custody brokers or dealers that are privately held and in good standing from the audit requirements of the Public Company Accounting Oversight Board. (c) Effective date This Act, and the amendments made by this Act, shall take effect on the date that is 180 days after the date of enactment of this Act.