Developments in Securities Regulation, Corporate Governance, Capital Markets, M&A and Other Topics of Interest. MORE

The SEC has proposed amendments to the broker-dealer financial reporting rule under the Securities Exchange Act of 1934.  The amendments would:

  • update the existing requirements of Exchange Act Rule 17a-5, facilitate the ability of the Public Company Accounting Oversight Board to implement oversight of independent public accountants of broker-dealers as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act
  • eliminate potentially redundant requirements for certain broker-dealers affiliated with, or dually-registered as, investment advisers.
  • require broker-dealers that either clear transactions or carry customer accounts to consent to allowing the SEC and designated examining authorities to have access to independent public accountants to discuss their findings with respect to annual audits of the broker-dealers and to review related audit documentation.
  • enhance the ability of the Commission and examiners of a designated examining authority to oversee broker-dealers’ custody practices by requiring broker-dealers to file a new Form Custody.

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Check frequently for updates on the Dodd-Frank Act and other important securities law matters.

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