SEC Announces New Small Business Advocate Office
In a public statement issued on September 13 , the Securities and Exchange Commission (“SEC”) announced its nationwide search for the agency’s first advocate for small business capital formation. The selected candidate of this new position will support small businesses and their investors, as well as offer assistance and conduct outreach to address their concerns and suggest improvements to the regulatory environment. In addition, the advocate will have to establish and supervise a new SEC office, the Office of the Advocate for Small Business Capital Formation. The small business advocate will be selected by and report to the SEC chairman and commissioners.
Bank Regulators Add Guidance for FASB Credit Loss Standard
Several bank regulators have updated their interpretive guidance regarding the Financial Accounting Standards Board’s (“FASB”) credit loss standard. The revised guidance from Federal Deposit Insurance Corporation, Federal Reserve, the National Credit Union Administration, and the Office of the Comptroller of the Currency will be added to the December 2016-published frequently asked questions document that explains why the FASB issued Accounting Standards Update No. No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new guidance addresses how to handle subjective information when banks estimate their loss reserves when applying ASU No. 2016-13. In. Read More.
Topics: Accounting Standards Update, Banking, FASB, FASB credit loss standard, Financial Accounting Standards Board "FASB", Financial Instruments - Credit Losses (Topic 326), National Credit Union Administration, SEC, Securities and Exchange Commission "SEC", U.S. GAAP
Regulators Uncertain About Virtual Currency Market Oversight
As exchange-traded funds (“ETFs”), other kinds of exchange-traded products, and bitcoin-related items grow in popularity, regulators are still uncertain about how to oversee the virtual currency market. The topic became a point of discussion on September 8 at the Securities and Exchange Commission-New York University Dialogue on Securities Market Regulation in Washington, D.C. During the discussion, Kathleen Moriarty of international law firm Arnold & Porter Kaye Scholer LLP said that the SEC has held off on its oversight because the virtual currency markets are still in their early stages and are not policed well. Moriarity remarked that from her viewpoint,. Read More.
SEC Computers Compromised Last Year
Securities and Exchange Commission (“SEC”) Chairman Jay Clayton has announced that the agency’s computers were breached in 2016, possibly causing private information in its Electronic Data Gathering And Retrieval (“EDGAR”) filing system to be used for making illegal trades. In a statement issued on Wednesday, Clayton said an investigation is underway, but the SEC believes the security breach did not create unauthorized access to personally identifiable information, endanger the market regulator’s operations, or lead to systemic risk. Aside from stating that it detected the breach last year, the SEC has provided few details. The SEC did note that it realized. Read More.
SEC Staff Experiences Uptick in Revenue Standard Implementation Questions
As public companies prepare to implement Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (ASC 606), they are increasingly turning to Securities and Exchange Commission (“SEC”) staff members for implementation guidance. It is being reported that submitted questions concerning the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard increased by one-third last year, largely due to public companies needing assistance with financial reporting. One question submitted to the SEC involves revenue from credit cards. A company asked for guidance on its decision to record revenue from interchange fees that a merchant’s bank pays to the cardholder’s bank. Speaking. Read More.
Topics: Accounting Standards Update "ASU", AICPA, AICPA National Conference on Banks & Savings Institutions, American Institute of Certified Public Accountants "AICPA", FASB, Financial Accounting Standards Board "FASB", Implementation, Revenue from Contracts with Customers (Topic 606), Revenue Recognition, Securities and Exchange Commission "SEC"
Banks Express Concerns over FASB Credit Loss Standard
Banking institutions of all sizes are preparing to implement the Financial Accounting Standards Board’s (“FASB”) new standard that requires the calculation of future losses on bad loans versus disclosing losses that have already occurred. While the largest accounting update in years for banks requires an additional workload, some lenders are uncertain about how to sift through their data for estimating future losses and setting aside cash reserves. At the American Institute of Certified Public Accountants’ National Conference on Banks & Savings Institutions last week, Federal Savings Bank executive vice president and CFO James Brannen touched on the difficulties a small. Read More.
Topics: Accounting Standards Update "ASU", AICPA National Conference on Banks & Savings Institutions, Banks, FASB credit loss standard, Financial Instruments - Credit Losses (Topic 326), Securities and Exchange Commission "SEC"