CPAs and Advisors with Your Growth in Mind

SEC and SBA to Co-Host Events on Small Business Capital Raising

Partnering with the Small Business Administration (“SBA”), the Securities and Exchange Commission (“SEC”) has announced a joint venture to host events for informing small business owners and entrepreneurs on new options to help raise capital under the Jumpstart Our Business Startups (JOBS) Act. In a news release this week, the SEC said the joint events are geared toward current and prospective small businesses, such as those owned by minorities, women, and veterans. The events will also cover the JOBS Act, which increases the options businesses could use to raise capital, and other ways small businesses can raise funds per current and proposed. Read More.

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SEC Chair Pushes for Increased Gender Diversity on Corporate Boards

Speaking at a global conference on women in Washington, D.C. this week, Securities and Exchange Commission (“SEC”) chair Mary Jo White criticized the lack of women in boardrooms. In her remarks, White expressed frustration at the slow progress of gender diversity among corporate boardrooms and top management. Despite companies using mandatory quotas and other efforts to increase the representation of women on boards, White does not believe such methods are the best answer to boosting diversity. Citing recent data numbers and research, White said increased board diversity creates stronger boards since women have a higher understanding of employee and customer. Read More.

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SEC Nearing Decision on IFRS Adoption

As questions rise over the Securities and Exchange Commission’s (“SEC”) position on International Accounting Standards Board standards, the agency is close to addressing its use of International Financial Reporting Standards (IFRS) within the U.S. financial reporting system. With the SEC’s Mary Jo White repeatedly calling to make IFRS adoption a priority, the agency recently hired James Schnurr as its chief accountant. Scheduled to start his post October 6th, Schnurr could soon dedicate some policymaking action to IFRS. A retired partner from a Big Four firm, he previously said offering an IFRS option to U.S. companies provides various benefits. For instance,. Read More.

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SEC Creates New Office for Division of Economic and Risk Analysis

To support the agency with data-driven risk assessment tools for various activities, the Securities and Exchange Commission (“SEC”) has created a new office within its agency’s Division of Economic and Risk Analysis (“DERA”). Announced last week , the Office of Risk Assessment will continue the DERA’s existing efforts of creating effective risk evaluation tools and models, as well as work in collaboration with SEC market experts. Since being established five years ago, the DERA has led the SEC charge to develop risk assessment tools. For instance, the DERA created a broker-dealer risk assessment tool for SEC examiners to allot resources by evaluating a. Read More.

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Tracey McNeil Named SEC’s First Ombudsman

In line with the Dodd-Frank Act’s directive to create the Office of the Investor Advocate, the Securities and Exchange Commission (“SEC”) has selected Tracey McNeil as the agency’s first ombudsman. Announced last week , she will serve as a liaison for resolving any concerns retail investors may have with the SEC or self-regulatory groups. McNeil begins her role as SEC ombudsman on September 22nd. Currently, McNeil works in the SEC’s Office of Minority and Women Inclusion (“OMWI”; “the Office”). As a senior counsel with OMWI, she has advised in the establishment of the Office, and ensured the fair inclusion of minorities, women, and. Read More.

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Report Suggests SEC Comment Letter Disclosure Period to be Shortened

A new study by the American Accounting Association (“AAA”) is reporting complications with the current Securities and Exchange Commission (“SEC”) policy of waiting up to 20 business days of making comment letters public based on registrant filing reviews. Per the AAA’s report, it was determined insider sales are 70 percent above the normal rate five business days before revenue recognition-related comment letters by the SEC are publicly disclosed. This is notable because revenue recognition is one of the most critical accounting issues discussed in comment letters and are likely to concern investors. As noted by the report, the SEC’s current. Read More.

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