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 September 23, 2014, the SEC approved the adoption of a Supplemental Inventory Schedule (“SIS”), as proposed under FINRA Rule 4524, requiring additional info on the inventory positions held by certain broker-dealers. The SIS must be filed by a broker-dealer that is required to file FOCUS Report Part II or Part IIA or FOGS Report Part
On Wednesday November 12, 2014, 6-8 p.m., Bryon Lyons, CEO of SDDCO Brokerage Advisors LLC will facilitate a panel discussion on financial services firm management at the Cornell Club in NYC: Compliance to Cyber-Security ~ Exploring Your Options Special guest: Steven Lofchie, Partner, Cadwalader, Wickersham & Taft LLP Co-panel contributors: Larry Goldfarb, Director of Sales, Erado Message Control Solutions and
On October 9, 2014, the Securities and Exchange Commission (“SEC”) issued a Risk Alert and supplementary FAQs regarding unregistered transactions. The Risk Alert aims to remind broker-dealers of their responsibilities on behalf of their customers when facilitating sales of these transactions. This release comes in conjunction with an enforcement action by the SEC. An SEC investigation
The IRS advises taking steps to align the taxes you pay ahead to the taxes you’ll actually owe: Adjust Withholding Employees who believe their withholding is too low to cover what they will owe can increase their withholding to avoid a big tax bill. Present a new, completed Form W-4 Employee’s Withholding Allowance to your employer. Enter the
The Investor Advisory Committee (“IAC), formed by the SEC, recently recommended five alternative ways to redefine who should be considered an accredited investor. The reason for this proposed revamp is twofold: it was mandated by the Dodd-Frank Wall Street Consumer Protection Act (“Dodd-Frank Act”) in 2010 and made more pressing last summer when the SEC
The SEC Approved Amendments to the Customer and Industry Codes to enable arbitrators to report serious fraud cases to FINRA, whether ongoing or imminent, in the midst of an arbitration case. The amendments become effective on October 27, 2014, for arbitration cases with remaining scheduled hearings. The referral protocol had been this: arbitrators were only
FINRA member broker-dealers must draft, implement, and enforce written supervisory procedures to supervise the activities of their associated persons* (“APs”) and business lines to prevent and detect violations and conflicts of interest. FINRA’s new supervisory rulebook, which consolidated and codified existing supervisory guidance, becomes effective on December 1, 2014. FINRA’s new, supervisory rulebook (“New Rules”)
The SEC’s Office of Investor Education and Advocacy issued the Investor Bulletin: Private Placements under Regulation D (“Private Placements Bulletin”) to educate investors about investing in unregistered securities offerings or private placements under Regulation D of the Securities Act. The Private Placements Bulletin expands further upon the following subtopics as they relate to investor protection.
FINRA has updated imbedded text of Securities Exchange Act of 1934 (“SEA”) financial responsibility rules for broker-dealers in the Interpretations of Financial and Operational Rules. The updated text reflects as effective (July 2014) the Final Rule: Removal of Certain References to Credit Ratings Under the Securities Exchange Act of 1934 (“Final Rule”). The Final Rule
Every broker-dealer must file a statement with FINRA and copy the SEC to identify its independent accountant. A new template will be available on FINRA Firm Gateway as of November 24, 2014, for compliance with Securities Exchange Act (“SEA”) Rule 17a-5(f)(2) (Statement Regarding Independent Public Accountant). In 2013, the SEC amended SEA Rule 17a-5 (effective June 1, 2014)
The SEC has begun its examination initiative of newly regulated municipal advisors. A free, municipal advisor compliance outreach program, set in Chicago on Monday, November 3, 2014, will provide municipal advisor professionals a forum for discussions with regulators about risk management, regulatory issues, and compliance practices. Registration is now open. The SEC’s Office of Compliance Inspections and
FINRA is seeking comments on their proposed rule to execute the Comprehensive Automated Risk Data System (CARDS), a data collection program designed to anticipate the latest compliance threats. The initiative was originally released in January (Regulatory Notice 13-42) as a concept proposal. Overview CARDS is an initiative which would allow FINRA to safeguard investors by
In September, the SEC proposed a rule under the Securities Act of 1933 (“Securities Act”) to provide that certain communications involving security-based swap quotes would not constitute “offers of such security-based swaps or any guarantees of such security-based swaps that are securities” for purposes of the Securities Act, Section 5 registration requirements. Under the proposed
The National Futures Association (“NFA”) now requires member Futures Commission Merchants (“FCMs”) to also send copies of two Commodity Futres Trading Commission (“CFTC”) filings to the NFA: Quarterly, Commission Risk Exposure Report Annual, Chief Compliance Officer (CCO) Report Risk Exposure Reports Under CFTC Regulation 1.11, each FCM must uphold a system of risk management policies and procedures designed
The U.S. Securities and Exchange Commission (“SEC”) adopted amendments to remove references to credit ratings in rules covering broker-dealer financial responsibility and the confirmations of transactions. Amendments to the liquid capital rule, specifically, removed references to the ratings of nationally recognized statistical rating agencies or “NRSROs” and substituted a new standard of deciding creditworthiness. This
The Institute for the Fiduciary Standard (the “Institute”) released guidance focusing on the best, ethical principles for financial advisers. If the principles seem familiar, they are. The guidance put forth by the Institute’s president, Knut A. Rostad, channels the KISS principle (“Keep It Simple, Stupid”) by highlighting key ethical practices of the investment advisory profession that