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SEC Adopts Amendment to Single Issuer Exemption for Broker-Dealer Annual Reports's picture
Commentary by Steven Lofchie

The SEC adopted a rule change to clarify an annual reporting exemption for certain broker-dealers. The amendment provides that a broker-dealer that acts as an agent for a single issuer does not need an independent public accountant to certify its annual reports.

In the proposal (see prior coverage), the SEC reviewed the history of exemptions to Exchange Act Rule 17a-5 (adopted in 1957) and designed the rule change to clarify the continuing viability of the exemption.

The amendment will become effective on August 13, 2019.


This is a nice, even if small, sensible exemption that will primarily benefit captive distributors of investment company securities.

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