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.
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: Aerospace, Airlines, Asset Management, Broker-Dealer, Engineering and Construction Contractors, Financial Reporting Executive Committee "FinREC", Gaming, Health Care, Nonprofits, Revenue Recognition, Software
SEC Risk Alert and FAQs to Assist with Customer Sales of Securities
Serving as guidance for broker-dealers when involved with unregistered transactions on their customers’ behalf, the Securities and Exchange Commission (“SEC”) has issued a Risk Alert and accompanying FAQs. The Risk Alert discusses deficiencies identified by the SEC’s Office of Compliance Inspections and Examinations during its review of 22 broker-dealers that engage in microcap securities sales. In addition, the Risk Alert is supplemented with FAQs regarding customer sales of securities. Published by the SEC Division of Trading and Markets, the FAQs remind broker-dealers the requirements for abiding by the exemption. For the Risk Alert news release , visit the SEC website. Also be. Read More.
PCAOB Smaller Broker-Dealers Forum Set for October 29th
Hosted by members of the Public Company Accounting Oversight Board (“PCAOB”), the next Forum on Auditing Smaller Broker-Dealers is scheduled for October 29th. Taking place in Miami, Florida, the forum will begin at 8:30 a.m. EST and feature topics such as: The implementation of Rule 17a-5 and the PCAOB Audit and Attestation Standards; Compliant amendments to PCAOB Rules and Forms for Broker-Dealer Auditors; and An update from the Financial Industry Regulatory Authority. Members of PCAOB-registered firms that audit public companies are encouraged to attend the Miami forum. Attending the event is free, but participants must pre-register online by October 22nd.. Read More.
SEC Rule to Extend Exemption from Conflict-of-Interest Rules
Proposed by the Securities and Exchange Commission (“SEC”), Temporary Rule Regarding Principal Trades with Certain Advisory Clients amends rule 206(3)-3T under the Investment Advisers Act of 1940. Per the proposal, rule 206(3)-3T would be extended to December 31, 2016. Comments on Temporary Rule Regarding Principal Trades with Certain Advisory Clients are due 30 days after being published in the Federal Register. The amendment provides an another means for investment advisers registered as SEC broker-dealers to meet section 206(3) requirements of the Investment Advisers Act when performing in a principal capacity during transactions with certain advisory clients. Check out the Firm’s SEC Audit page for more information on our services.
PCAOB Guidance Issued for Audits of Broker-Dealers
Assisting auditors of brokers and dealers registered with the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board (“PCAOB”; “the Board”) has issued Staff Guidance for Auditors of SEC-Registered Brokers and Dealers (“the Guidance”). Effective for fiscal years ending on or after June 1, 2014, the Guidance will help auditors complete audits in line with the Board’s standards required by the Dodd-Frank Act and SEC. During the transition period, auditors can reference the Guidance to note any requirements for SEC-registered broker-dealer audits and attestation engagements. Additionally, the new Guidance offers assistance on implementing PCAOB standards to such. Read More.