Pursuant to a legislative requirement, GAO reviewed the Securities and Exchange Commission's (SEC) new rule on reports to be made by certain brokers and dealers. GAO noted that: (1) the rule would amend Rule 17a-5 under the Securities and Exchange Act of 1934 to require certain broker-dealers to file with the SEC and their designated examining authorities a report prepared by an independent public accountant regarding the broker-dealer's process for preparing for the year 2000; and (2) SEC complied with the applicable requirements in promulgating the rule.