SEC Chief Accountant Delivers Presentation Regarding Auditing Smaller Broker-Dealers

SEC Chief Accountant Kevin M. Stout delivered a presentation on auditing smaller broker-dealers. The presentation also provided a useful overview of certain of the SEC's recent amendments to its capital and custody rules.

In his presentation, Mr. Stout discussed:

• Broker-Dealer Rulemaking:
  • July 30, 2013 amendments to the SEC Broker-Dealer Financial Responsibility Rules;
  • Broker-Dealer Annual Reporting Requirements prior to the July 30, 2013 amendments to Exchange Act Rule 17a-5 ("Reports to Be Made by Certain Brokers and Dealers");
  • post-July 30, 2013 amendments to the SEC Broker-Dealer Annual Reporting Requirements, which include:
    • compliance reports (and related examinations);
    • exemption reports (and related reviews); and
    • frequently asked questions; and
• the applicability of Auditor Independence Rules to broker-dealer audits.

Related news: SEC Publishes Two Final Rules Regarding Broker-Dealers (Fed. Reg.) (with Lofchie Comment) (August 21, 2013); SEC Amends Capital and Custody Rules for Broker-Dealers (with Lofchie Comment) (July 31, 2013); SEC Extends Compliance Date for Certain Broker-Dealer Financial Responsibility Rule Amendments (October 17, 2013); PCAOB Proposes Rules Regarding Auditing Standards for Broker-Dealers (November 13, 2013).