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SEC Proposes New Broker-Dealer Regulations and Interpretations

The following proposed rules and interpretations by the Securities and Exchange Commission (“SEC”) aim to improve transparency regarding investors’ relationships with investment advisers and broker-dealers: Regulation Best Interest would require a broker-dealer to act in a retail customer’s best interest when recommending any securities transaction or investment strategy concerning securities to a retail customer. This regulation attempts to clarify that a broker-dealer cannot place its financial interests before a retail customer’s interests when making recommendations. A proposed interpretation would clarify the SEC’s opinion of the fiduciary duty investment advisers owe to clients. By stressing principles important to the fiduciary duty,. Read More.

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PCAOB Requests Feedback on 2018-2022 Strategic Planning

Seeking the public’s input on future objectives, the Public Company Accounting Oversight Board (“PCAOB”) has issued a brief survey on its strategic plan for 2018 to 2022. The survey asks participants to share their thoughts regarding the PCAOB’s approach to achieving its mission. Survey responses are due Tuesday, May 15. The survey follows the PCAOB’s December 2017 appointment of five new members and the organization’s desire for a fresh look at its ongoing efforts. It also comes at a time when the PCAOB is undergoing the annual preparation of its five-year strategic plan. As part of this year’s planning process, the PCAOB wants to hear from outside parties. Read More.

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SEC Issues Statement against Unlawful Online Platforms

In a public statement issued March 7 , the Securities and Exchange Commission’s (“SEC”) Divisions of Enforcement and Trading and Markets warned about using illegal online platforms for trading digital assets. According to the SEC, more investors are using online platforms to buy and sell digital assets such as those sold in Initial Coin Offerings. The online platforms regularly claim that investors can rapidly purchase and sell digital assets. The statement encourages investors to consider asking several questions before trading digital assets via an online trading platform. Investors should ask whether the platform is registered as a national securities exchange; how the platform selects digital. Read More.

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XBRL Frequently Asked Questions Updated

This week, Securities and Exchange Commission (“SEC”) staff members revised the  FAQs on the IFRS Taxonomy . The updated version offers additional contact clarification and information for questions regarding structuring disclosures using the IFRS Taxonomy. Additionally, Foreign Private Issuers that prepare financial statements in compliance with International Financial Reporting Standards and are bound by Rule 405 of Regulation S-T must submit their financial statements in eXtensible Business Reporting Language (“XBRL”) via an IFRS Taxonomy listed on the agency’s website. The updated FAQs are available at SEC.gov.  

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SEC’s Corp Fin Revises Guidance on Non-GAAP Measures

The Securities and Exchange Commission’s (“SEC”) Division of Corporation Finance (“Corp Fin”) recently updated its Compliance and Disclosure Interpretation (“C&DI”), Non-GAAP Financial Measures . The revised C&DI features Corp Fin staff interpretations of the provisions for using non-GAAP financial measures. It also adds Questions 101.02 and 101.03, which includes guidance related to business combination transactions, including information about offering non-GAAP financial measures in specific forecasts. Visit SEC.gov to see the updated C&DI.

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New CAQ Tool to Help with Cybersecurity Risk Management Oversight

The Center for Audit Quality (“CAQ”) has developed a new tool to help board members oversee enterprise-wide cybersecurity risk management. Cybersecurity Risk Management Oversight: A Tool for Board Members lists questions board members can ask meeting with management and CPA firms about cybersecurity risks and disclosures. Such questions are divided into the following areas: Understanding how the financial statement auditor considers cybersecurity risk. Understanding the role of management and responsibilities of the financial statement auditor related to cybersecurity disclosures. Understanding management’s approach to cybersecurity risk management. Understanding how CPA firms can assist boards of directors in their oversight of cybersecurity risk management. The tool also collects cybersecurity-related resources from. Read More.

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