Broker-dealers operate in a highly regulated environment, which frequently changes. Below are highlights of some key broker-dealer amendments recently adopted by the SEC as well as PCAOB audit findings.
SEC Amendments
The recent Securities and Exchange Commission amendments relate to the net capital rule, the customer protection rule…more
After the barrage of investment frauds several years ago, the SEC came under intense pressure to update its rules protecting investors. The SEC responded by issuing what is commonly referred to as the “custody rules.”
The custody rules indicate that if an investment manager has custody of client funds, they…more
The Global Investment Performance Standards (GIPS) were created and funded by the CFA Institute to provide an ethical framework for the calculation and presentation of the investment performance history of an investment firm. Many investment firms understand that GIPS verifications are the primary key to gaining access to institutional assets…more
In December 2007, a proposed rule was published concerning the disclosures that must be furnished to plan fiduciaries in order for plan services to be considered “reasonable.” Following a public comment period, public hearing, and interim final rule published in July 2010, the final rule became effective July 1. This…more
This article originally appeared in Smart Business Philadelphia magazine.
A fundamental investing concept is that investors need to be compensated for taking on additional risk. However, investors often do not anticipate operational risks, and as a result, are often not compensated for them, says Todd E. Crouthamel, director, Audit &…more
Many investment advisors follow the Global Investment Performance Standards (GIPS) to bolster the credibility of their performance results. However, not all firms are able to claim compliance with GIPS. A non-GIPS examination report can add credibility to a firm’s performance results without the firm having to apply the…more
Global Investment Performance Standards (GIPS) are broadly accepted, voluntary global standards for calculating and presenting investment performance. The standards are ethical principles that promote fair representation and full disclosure of investment performance to prospective clients.
By standardizing investment performance reporting, investors around the world gain the additional transparency needed to…more
This article originally appeared in Smart Business Philadelphia magazine.
It has been touted as the most significant financial reform since Franklin D. Roosevelt’s New Deal.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, created in response to the financial crisis of the last few years, was signed…more
Due to the barrage of investment frauds over the past few years, the SEC has been under intense pressure to update its rules protecting investors. The SEC recently issued two releases that are designed to provide additional safeguards when an advisor has custody of client funds:
SEC Release IA-2968…more
On Friday, January 29, 2010, the GIPS Executive Committee (EC) approved the 2010 version of the GIPS standards. The EC, which serves as the decision-making authority for the GIPS standards, continually updates the standards through interpretations, guidance, and new provisions. In 2008, the EC (working with technical committees and…more