Broker-dealer reporting under rule 17a-5: proposed changes

The Securities and Exchange Commission's (SEC) proposed amendments to the broker-dealer financial reporting rule (rule 17a-5) has opened for public comment. In addition, the Public Company Accounting Oversight Board (PCAOB) has issued a set of proposed audit and attestation standards for audit engagements of broker-dealers.

An outgrowth of last year’s Dodd-Frank legislation, the SEC proposal provides three sets of amendments to Rule 17a-5 that will include: changes to the annual reporting requirements for broker-dealers and their auditors, a new requirement for certain broker-dealers to consent to have the SEC discuss audit findings and related documentation with their auditors, and a new requirement for broker-dealers to file an unaudited Form Custody quarterly.

With the comment period closing on 26 August 2011, you are invited to join Ernst & Young professionals who will review the issues.

Agenda for the discussion:

• Proposed broker-dealers financial reporting rule
• PCAOB inspection program
• Compliance dates
• Future considerations