SEC proposes clarifying broker-dealer exemption

By Ken Tysiac

The SEC is proposing a clarifying amendment to the exemption provisions of the broker-dealer annual reporting rule under the Securities Exchange Act of 1934.

The proposed amendment would clarify that a broker-dealer would not be required to engage an independent public accountant to certify the broker-dealer’s annual reports if the broker-dealer’s securities business has been limited to acting as a broker or agent for a single issuer in soliciting subscriptions for securities of that issuer — and other conditions are met.

The amendment is being issued to correct an error found in the 2013 publication of the exemption provision.

Comments on the proposal can be submitted through the SEC website within 30 days after the proposal is published in the Federal Register.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.

SPONSORED QUIZ

How well do you know small business?

There are over 30 million small businesses in the U.S., and many of them are optimistic in their outlook. Are you familiar with the obstacles and opportunities they are facing? Test your small business acumen with this quiz sponsored by Chase Ink®.

SPONSORED REPORT

In focus: Payroll

Providing payroll services that comply with ever-changing regulations and meet evolving employee and employer demands is no easy task. Paychex's Tom Hammond discusses common payroll considerations for CPA firms.