CPAs and Advisors with Your Growth in Mind

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.

Topics: , ,

Revenue Recognition Working Drafts Issued for Nine Industries

Earlier this month, the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) issued 20 working drafts of interpretative guidance for implementation issues related to the Financial Accounting Standards Board’s Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. The working drafts offer industry-specific examples for implementing the revenue recognition standard, and pertain to the following sectors: Aerospace and Defense Airlines Broker-dealers Engineering and Construction Contractors Gaming Health Care Asset Management Nonprofits Software Comments on the working drafts must be submitted by Thursday, September 1.

Topics: , , , , , , , , , ,