On October 10, the Public Company Accounting Oversight Board adopted two attestation standards pertaining to audits of brokers and dealers intended to help protect customer funds by enhancing the quality of compliance information provided to the Securities and Exchange Commission and used in its regulatory oversight of broker-dealers. News Release.
Public Company Accounting Oversight Board
SEC Custody Rule No-Action Letter
On July 21, the SEC provided no-action relief under Section 206(4) of the Investment Advisers Act of 1940 to investment advisers that for purposes of compliance with Rule 206(4)-2 (the “Custody Rule”), engage auditors for broker-dealers to: (i) perform surprise examinations required by the Custody Rule; (ii) prepare internal control reports; or (iii) audit the financial statements of a pooled investment vehicle. This no-action relief will expire upon the earlier of the approval of a permanent Public Company Accounting Oversight Board inspection program for broker-dealer auditors or December 13, 2013. SEC No-Action Letter.