Certain broker-dealers received much-needed relief this month when the Securities and Exchange Commission agreed to extend the annual audit filing deadline by 30 calendar days, cementing 90 days as the new regulatory obligation.
The extension, issued in a February 12th order, allows broker-dealers who meet certain criteria to file the reports within 90 calendar days after the end of their fiscal year. Previously, the reports were due within 60 calendar days.
The SEC extended the deadline in response to a request from the Financial Industry Regulatory Authority, accepting FINRA’s position that the extra 30 calendar days would reduce the burdens that certain smaller broker-dealers face in obtaining audit services. The extension also provides needed time for their PCAOB registered independent public accountants to perform the audit work necessary to comply.
Full details of the SEC order are included here, but in general the deadline for filing the annual reports is extended 30 calendar days for broker-dealers who:
1) Are in compliance with Rule 15c3-1;
2) Have total capital and allowable subordinated liabilities of less than $50 million, as reported in box 3530 of Part II or Part IIA of its FOCUS Report;
3) Are permitted to file an exemption report as part of their most recent fiscal year-end annual reports;
4) Submit written notification to their designated examining authority of their intent to rely on this order on an ongoing basis for as long as they meets the conditions of the order;
5) File the annual report electronically with the Commission using an appropriate process.
Jay Gettenberg, ACI Managing Partner, has been advocating for this change since being elected to the FINRA Small Firm Advisory Committee (SFAC) effective January 1, 2020. He has stressed the need for the 30-day extension to senior FINRA staff, citing increasing audit costs, availability of PCAOB registered auditors, and logistical challenges of completing an audit within only one month of the regulatory Focus filing deadline.
Mr. Gettenberg said, “We believe this rule change will ease the time pressures broker-dealers face, while simultaneously ensuring higher-quality audits and providing the readers of the financial statements with both greater transparency and an increased likelihood of accuracy in the representations being made by senior management.”
Gettenberg, as a member of SFAC, assisted in laying the groundwork for FINRA’s request. His efforts to ensure a successful implementation will continue, and will include having other regulatory organizations, most notably SIPC, NFA/CFTC and the various states, accept similar 90-day filing deadlines.
ACI will continue to provide updates on our Resources page as more information becomes available.
ACI’s Jay Gettenberg Is a Panelist for Upcoming Foundation for Accounting Education Discussion of Post-COVID Regulatory Issues
/in News/by Shannon SandersonACI Managing Partner, Jay Gettenberg, will join a teleconference of accounting professionals on May 5. They will discuss regulatory issues and considerations the securities industry faces in a post-COVID economy.
The 70-minute panel, sponsored by the Foundation for Accounting Education, will be geared toward providing broker dealer FINOPS and auditors with the latest information available. FinOps and auditors will share their experiences from auditing in the COVID environment and discus various regulatory topics including the latest news from the SEC, FINRA and the PCAOB. The panel is scheduled to begin at 2:05 p.m.
The panel will be part of the foundation’s daylong Broker/Dealer Conference Webcast, running from 8:30 a.m. to 5 p.m. The conference is designed for CPAs who service the broker/dealer industry, financial principals in the securities industry, and representatives of regulatory agencies. Attendees can receive 6 Specialized Knowledge/Industries (NYSED) credits, 1 Accounting (NYSED) credit, and 1 Auditing (NYSED) credits. For more details and to register, click here: https://bit.ly/3deHalF.
Gettenberg, a member of the FINRA Small Firm Advisory Committee (SFAC), has participated in previous FAE panels, including a Broker/Dealer Tech session in December and one focusing on navigating through COVID times in July.
ACI will continue to provide updates on our Resources page on current news regarding regulations and the industry.
SEC Grants Additional 30 Days for Certain Broker-Dealers to File Annual Reports
/in Regulatory Updates/by Shannon SandersonCertain broker-dealers received much-needed relief this month when the Securities and Exchange Commission agreed to extend the annual audit filing deadline by 30 calendar days, cementing 90 days as the new regulatory obligation.
The extension, issued in a February 12th order, allows broker-dealers who meet certain criteria to file the reports within 90 calendar days after the end of their fiscal year. Previously, the reports were due within 60 calendar days.
The SEC extended the deadline in response to a request from the Financial Industry Regulatory Authority, accepting FINRA’s position that the extra 30 calendar days would reduce the burdens that certain smaller broker-dealers face in obtaining audit services. The extension also provides needed time for their PCAOB registered independent public accountants to perform the audit work necessary to comply.
Full details of the SEC order are included here, but in general the deadline for filing the annual reports is extended 30 calendar days for broker-dealers who:
1) Are in compliance with Rule 15c3-1;
2) Have total capital and allowable subordinated liabilities of less than $50 million, as reported in box 3530 of Part II or Part IIA of its FOCUS Report;
3) Are permitted to file an exemption report as part of their most recent fiscal year-end annual reports;
4) Submit written notification to their designated examining authority of their intent to rely on this order on an ongoing basis for as long as they meets the conditions of the order;
5) File the annual report electronically with the Commission using an appropriate process.
Jay Gettenberg, ACI Managing Partner, has been advocating for this change since being elected to the FINRA Small Firm Advisory Committee (SFAC) effective January 1, 2020. He has stressed the need for the 30-day extension to senior FINRA staff, citing increasing audit costs, availability of PCAOB registered auditors, and logistical challenges of completing an audit within only one month of the regulatory Focus filing deadline.
Mr. Gettenberg said, “We believe this rule change will ease the time pressures broker-dealers face, while simultaneously ensuring higher-quality audits and providing the readers of the financial statements with both greater transparency and an increased likelihood of accuracy in the representations being made by senior management.”
Gettenberg, as a member of SFAC, assisted in laying the groundwork for FINRA’s request. His efforts to ensure a successful implementation will continue, and will include having other regulatory organizations, most notably SIPC, NFA/CFTC and the various states, accept similar 90-day filing deadlines.
ACI will continue to provide updates on our Resources page as more information becomes available.
ACI’s Jay Gettenberg to Appear on Dec 8 FAE Broker Dealer Tech Session Teleconference
/in News/by Shannon SandersonACI Managing Partner, Jay Gettenberg, will join a teleconference of accounting professionals on December 8th to discuss regulatory issues and considerations the industry faces as the country heads into 2021.
The 90-minute panel, sponsored by the Foundation for Accounting Education, will be geared toward providing broker dealer FINOPS and auditors with the latest information available. Topics may include the impact of the pandemic on industry practices as well as the latest news from the SEC, FINRA and the PCAOB.
The panel will be part of the foundation’s afternoon teleconference, which runs from 1 p.m. to 4:30 p.m. on December 8th. The session is aimed at industry professionals at the Intermediate/Advanced Level. Attendees can receive 1.5 Auditing (NYSED) credits, 1 Specialized Knowledge/Industries (NYSED) credit and 0.5 Auditing (NYSED) credits. For more details and to register, click here: https://cpe.nysscpa.org/product/32215
Gettenberg, a member of the FINRA Small Firm Advisory Committee (SFAC), has participated in previous FAE panels, including one in July on “Accounting and Auditing in COVID Times.”
ACI will continue to provide updates on our Resources page as we manage together through this challenging time. We hope everyone is taking proactive and precautionary measures to remain safe.
ACI’s Managing Partner, Jay Gettenberg, Will Be a Citrin Cooperman FINOP Roundtable Panelist
/in News/by Shannon SandersonACI Managing Partner, Jay Gettenberg, will participate in a November 12 virtual roundtable discussion on important issues FINOPs may face in the upcoming audit season.
The roundtable, sponsored by Citrin Cooperman, will bring together six industry veterans to provide insights and advice on a variety of topics, including the impact of the COVID pandemic on internal control changes, fixed asset and other impairments, and related issues.
Gettenberg, a member of FINRA’s Small Firm Advisory Committee (SFAC), will focus his remarks on amending membership agreements for the new guidance issued by the SEC and FINRA, PPP loan forgiveness treatment ASC 470 vs. IAS-20, and going concern evaluations under COVID-19.
The panelists will also discuss other topics such as:
Citrin Cooperman partner John Cavallone, CPA, will moderate the discussion.
The roundtable will be 4:30 p.m. to 6 p.m. Eastern Time on November 12. Registration is free and 1.5 CPE credits will be offered.
For more information or to register click here.
ACI will continue to provide updates on our Resources page as we manage together through this challenging time. We hope everyone is taking proactive and precautionary measures to remain safe.