The SEC has adopted some important changes to broker-dealer reporting rules. The changes are meant to enhance oversight over custody rules and strengthen audit requirements.

digital signatures for broker dealers

Some of the most important parts of the new rules are:

      • All broker-dealers have to file a new unaudited quarterly form giving information on their custodial practices. This form will address whether a broker-dealer maintains custody and how the assets are maintained. (Effective December 31, 2013)
      • All broker-dealers must prepare and file an annual audited compliance report or an exemption report including financial statements, footnotes and any supplemental information related to particular financial responsibility rules. (Effective June 1, 2014)
      • An independent registered public accountant must evaluate the compliance report or the claim of exemption and must issue a report. The audits have to follow PCAOB standards.
      • The Securities and Exchange Commission and authorized examining authorities will be able to talk to the independent registered public accountants and the audit documents for all broker-dealers that clear transactions and carry customer accounts.
      • Some broker-dealers will be able to use the new reports to fulfill their investment advisor custody rule requirements.

You may also like

The Credit Union Guide to Recent Regulation Z Changes
The Credit Union Guide to Recent Regulation Z Changes
29 January, 2013

January has been a big month for the Consumer Financial Protection Bureau (CFPB). The bureau published final rules on Re...

6 Tips for Secure Online Passwords
6 Tips for Secure Online Passwords
14 September, 2017

John Harris, chief technology office of SIGNiX, recently wrote an article for American City & County about the impor...