Regulatory Alerts2018-09-27 | 2018-20880Added
Amendment to Single Issuer Exemption for Broker-Dealers
The Securities and Exchange Commission proposes an amendment to Rule 17a-5 to clarify that broker-dealers acting solely as agents for a single issuer are exempt from the requirement to engage an independent public accountant for annual reporting. This correction addresses a drafting error that inadvertently restricted the exemption to a specific issuer rather than any single issuer, aligning the rule text with its original 1977 intent. The Commission states that the audit requirement is unnecessary for these limited entities because the sole customer, typically an affiliate, has direct access to the broker-dealer's financial information.
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