CFTC Issues No-Action Relief to Certain Introducing Brokers

On January 23, 2015 the CFTC Division of Swap Dealer and Intermediary Oversight issued no-action relief to certain introducing brokers (IBs) with respect to net capital and financial reporting requirements under Commission Regulations 1.10 and 1.17, respectively.  The conditioned relief permits foreign-domiciled IBs to file audited and unaudited form 1-FR-IBs, as applicable, using local accounting principles in effect where the IB is domiciled in lieu of U.S. Generally Accepted Accounting Principles or International Financial Reporting Standards. In addition, eligible foreign-domiciled IBs will not be required to apply certain foreign currency capital charges under Regulation 1.17 and staff guidance.  Release.

SEC Final Report on Global Accounting Standards

On July 13, the SEC‘s Office of Chief Accountant published its final staff report on the Work Plan related to the potential adoption of global accounting standards. The Work Plan was published in February 2010 to consider factors relevant to a determination as to whether, when, and how the current financial reporting system for U.S. issuers should transition to a system incorporating International Financial Reporting Standards (IFRS). The SEC currently has no timeframe to decide whether to switch to IFRS, so it’s uncertain when that decision will be made. SEC Release. SEC Report.