Regulation & Compliance
The Financial Industry Regulatory Authority and the Securities and Exchange Commission are stepping up their scrutiny of the accounting and audit process of broker/dealers, reviewing financials more closely and requesting data on a more frequent basis, according to panelists at Wednesday’s New York State Society of CPAs Broker/Dealer Conference. Gary Purwin, partner with accounting firm Pustorino, Puglisi & Co., said FINRA coordinators are becoming more sophisticated and are reviewing more accounting data of broker/dealers than ever before, said Purwin. Also, regulators are asking for more accounting data on a monthly basis, rather than just on a quarterly basis. For example, he said they’ll call if a b/d doesn’t include such details as a contingency footnote, a type of disclosure.
