SEC Weighs Deeper Audits of Broker-Dealers Who Hold Client Cash
This article is for subscribers only.
The U.S. Securities and Exchange Commission may increase the scope of broker-dealer audits and what firms must report to the agency, after moving in 2009 to increase protections for clients of investment advisers.
SEC commissioners will vote today on proposed changes to broker-dealer auditing and reporting rules at a meeting in Washington. As with the 2009 rules, which tightened oversight of advisers’ custody of client assets after Bernard Madoff Ponzi scheme was exposed, the new changes increase oversight of the minority of about 300 broker-dealers who hold customers’ cash.