Regulatory Alerts2015-12-31
Market Guidance Note on Rule 16 and 18
The Securities and Exchange Commission has issued a guidance note establishing a three-tier reporting framework under Rule 18 to standardize licensee disclosures on customer money and securities. Practitioners must provide limited assurance under ISAE 3000 for segregated customer funds and safekept securities, while addressing remaining compliance obligations through standard audit opinions and reports on legal requirements. The framework mandates that all assurance outputs be directly addressed to the Commission, supported by a standardized licensee statement tracking customer money balances and securities valuations.
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