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 sddco.com website. Always check with your accountant and/or attorney.
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 In particular, withdrawn Rule 2243 (Disclosure and Reporting Obligations
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
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
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
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
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
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
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
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
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
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