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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.

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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.

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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.

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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.

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SEC Advisor Speaks on Materiality and Auditor’s Report

At a recent speech for management accountants at a conference in Tulsa, OK, Stephen Deane discussed mini-case studies on policymaking associated with materiality and the independent auditor’s report. Deane, an investment engagement advisor in the Securities and Exchange Commission’s (“SEC”) Office of the Investor Advocate, said that the mini-case studies offer insight into the policymaking process and the problems that policymakers face. The mini-case studies also distinguish between outside investors and managers inside the company. During his speech, Deane provided attendees a technical review of the Financial Accounting Standards Board’s attempts to establish materiality guidance and the Public Company Accounting. Read More.

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SEC Advisory Committee Announces Public Meeting

A public meeting by the Securities and Exchange Commission (“SEC”) Advisory Committee on Small and Emerging Companies (“Committee”) is scheduled for Wednesday, September 13. According to the meeting’s agenda, the Committee will discuss matters concerning rules and regulations impacting small and emerging business under federal securities laws. The meeting will start at 9:30 a.m. ET, and will be hosted in Washington, D.C., at the agency’s headquarters. A live stream of the meeting will be available on SEC.gov.

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