Resources/ Updates - June 2014

The SDDco Client Update

The SDDco Client Update is an action oriented email prepared in-house, tailored to client needs, and sent as an adjunct to our online newsletter.  Verified newsletter subscribers receive our Client Update once each month.

The SDDco Client Update is intended to provide general information only. It is not intended as, and should not be taken as, financial, tax, accounting, legal, consulting or any other type of advice specific to you or your firm. Users of the SDDco Client Update should not act or refrain from acting on the basis of information provided on the website. Always check with your accountant and/or attorney.


FINRA Backs off Broker-Dealer Sign-On Bonus Reporting…for Now

On June 20, 2014, FINRA (the “Financial Industry Regulatory Authority”) withdrew Rule 2243, which had aimed to give former customers of a recruited stock broker representative or “recruit” “a more complete picture of the factors involved in a decision to transfer assets to a recruiting firm.” In particular, withdrawn Rule 2243 (Disclosure and Reporting Obligations

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New Broker-Dealer Report Pending ~ Supplemental Inventory Schedule (SIS)

FINRA proposed to the SEC the adoption of a supplemental schedule (under FINRA Rule 4524) that would provide more details on the inventory positions held by certain broker-dealers. If approved, the new report—Supplemental Schedule of Inventory Positions (“SIS”)—would augment a broker-dealer’s Financial and Operational Combined Uniform Single (“FOCUS”) report or the Finances and Operations of Government Securities

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MSRB Backs the Axe of FinOp Requirements for Municipal Security Dealers

The Municipal Securities Rulemaking Board (“MSRB”) filed with the SEC proposed changes to MSRB Rule G-3, which includes narrowing the role of Limited Representatives and eliminating the classification of Financial Operations Principal or “FinOp” for brokers and dealers engaged in the municipal securities business (“dealers”). Rule G-3(a) Change ~ Limited Representative More Limited  The proposed rule

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SDDCO Filing Reminders for Broker-Dealers and Advisers

Broker Dealer Quarterly Filings: Due dates are approaching on regulatory reporting required of Broker-Dealers (“BDs”) for the 2nd quarter (which ends June 30, 2014): FOCUS Report: SEC Rule 17a-5 generally requires BDs that do not clear or carry customer securities to send quarterly FOCUS reports to FINRA within 17 business days of each quarter.  (BDs that that

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Mutual Funds ~ Must ID Affiliated Persons of Each Entity

The SEC Division of IM Management (“IM Staff”) issued its latest guidance on June 9, 2014.  This publication impresses upon mutual funds to keep their compliance policies and procedures  (“P&P”) up to snuff for each fund entity. IM Staff explains that todays mutual fund likely operates as a series company defined as “a single corporation or state

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Major Changes to Worldwide Revenue Accounting Standards

Newly announced financial reporting standards will attempt to bridge the great accounting divide between U.S. rules and those generally observed internationally by the E.U.  and 100 other countries when booking revenue from customer contracts. Methods of recognizing revenue—those telling numbers of company performance in financial statements—have not been geographically consistent.   Revenue recognition rules in U.S. generally accepted accounting principles

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Freedom to Pay Taxes

The Internal Revenue Service (IRS) yesterday ratified the Taxpayer Bill of Rights.  The document, like the United States Bill of Rights, contains 10 assurances to the public. National Taxpayer Advocate Nina E. Olson explained, “taxpayer surveys conducted by my office have found that most taxpayers do not believe they have rights before the IRS and

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FINRA Seeks BIG Data to Revolutionize Securities Regulation

At the FINRA Annual Conference in Washington DC on May 19th, Chairman and CEO Richard Ketchum discussed restoring consumer confidence and the role technology should play.  “We need to take our vigilance to the next level and leverage the advanced technology now at our disposal…We need investors to understand that we are watching the markets

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MSRB to Survey Municipal Advisors for Qualifying Exam Content

Mid June through early July, the Municipal Securities Rulemaking Board (MSRB) will survey registered municipal advisors “to inform the development of a professional qualification exam for municipal advisors”. The Survey A confidential electronic survey will assess the business activities of municipal advisory professionals. An independent survey administrator will distribute the survey to designated MSRB regulatory

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FINRA Clarifies Some “Hybrid” Securities Trade Reporting

FINRA gave more info on how certain trades having both debt-like and equity-like features or Hybrid securities must be reported to FINRA.  The SEC approved an interpretation regarding the appropriate trade reporting facility to which firms should report transactions in the following three types of hybrid securities: Unlisted depositary shares having a liquidation preference of

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NFA $1,000 Late Matter Disclosure Fee ~ as of June 1st

The National Futures Association (“NFA”) now imposes a $1,000 late fee when a firm or individual does not disclose a disciplinary matter (“matter”) upon registration or when updating an existing registration on or after June 1, 2014. Disclosure Matters With respect to disclosing new matters: A sponsor firm is responsible for promptly reporting each matter related to

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SDDco specializes
in two industries.

Our know-how and our network supports the financial services & tech industries.

We hold the right training and licensures to keep you in step and mitigate risk.

Our Credentials


SDDco supports
industry leaders.

We oversee back office functions so you can focus on your own clients.

Major banks, private funds, RIAs, BDs, and tech startups choose us.

Our Clients


SDDco is as good
as its great people.

Our CPAs, FinOps and
consultants are licensed,
experienced professionals.

Partner with us for start-ups and for ongoing accounting, compliance and tax work.

Our People


SDDco performs
services onsite.

Outsourced support with
SDDco isn’t out of sight.

We work in your space and for your team on a regular basis. Engage the expertise without the fulltime hire.

Our Praises


SDDco observes
AICPA principles.

Our inaugural firm began
when two CPAs opened
a NYC office back in 1952.

We faithfully maintain the CPA standards: integrity, competency, confidentiality….

Our Group