Expert Panel - Stockbrokerage and Investment Banking 


About the Expert Panel
The Stockbrokerage and Investment Banking Expert Panel serves the needs of AICPA members on financial and business reporting and audit and attest matters. The expert panel protects the public interest by bringing together knowledgeable parties in the stockbrokerage and investment banking industry to deliberate and come to agreement on key stockbrokerage and investment banking issues.
Industry News and Resources

Expert Panel Projects

Securities and Exchange Commission

  • Electronic Filing of Broker-Dealer Annual Reports
  • January 2017 - The SEC Office of Compliance Inspections and Examinations announced its 2017 examination priorities for investment advisers and investment companies, broker-dealers, transfer agents, clearing agencies, private fund advisers, national securities exchanges, and municipal advisors.
  • The staff of the SEC Division of Trading and Markets has issued staff guidance (in the form of FAQs). To read FAQs, issued in April 2014, about the amendments to Rule 17a-5 and Form Custody, click here. For FAQs, issued in March 2014, concerning certain broker-dealer financial responsibility rules, click here. Other FAQs published by the staff of the SEC Division of Trading and Markets are available here.
  • In July 2013, the SEC issued two final rules that affect broker-dealers registered with the SEC and their auditors. One rule adopts amendments that would increase protections for investors whose cash and securities are held by broker-dealers registered with the SEC. These amendments to SEC Rule 17a-5 require, in part, that the audits of broker-dealers' financial statements and supplemental information, as well as the auditor's examination of the compliance report or the auditor's review of the examination report, be conducted in accordance with PCAOB standards for fiscal years ending on or after June 1, 2014.

Public Company Accounting Oversight Board

  • PCAOB Inspections of Auditors of Brokers and Dealers, including recent Staff Inspections Briefs and speeches
  • The PCAOB announced the dates for 2017 forums on auditing smaller broker-dealers. The SEC staff's presentation from these forums will be posted here when available.
  • Relevant information from recent PCAOB webinars that may be of interest to broker-dealers and their auditors:
  • August 2016 - PCAOB issued the fifth annual report on the Progress of the Interim Inspection Program Related to Audits of Brokers and Dealers and accompanying Fact Sheet. The report covers inspections conducted in 2015, the first inspection year in which audits of SEC-registered broker-dealers have been performed under the PCAOB standards. This report cites high levels of audit deficiencies, similar to prior year’s inspection results. Independence continues to be a focus area. The report also states that the PCAOB staff is working to develop a rule proposal for the Board to consider during 2016 to establish a permanent inspection program, which will address, among other matters, whether to exempt any category of registered public accounting firm. Under the interim inspection program adopted in 2011, the PCAOB inspects audit engagements of all types of SEC-registered broker-dealers.
  • Until the PCAOB announces the scope of their permanent inspection program, audits of broker-dealers will be subject to both PCAOB inspection and AICPA peer review. Peer reviewers are regularly identifying audits where the firm failed to comply with SEC independence rules by preparing the firm’s financial statements, which is consistent with the PCAOB interim inspection program findings. Read more on this topic and other peer review implications for broker dealer engagements.
  • June 2014 - PCAOB released staff guidance for auditors of SEC-registered brokers and dealers.
  • In October 2013, the PCAOB adopted two attestation standards pertaining to audits of brokers and dealers and an auditing standard, which is applicable when auditors are engaged to perform audit procedures and report on supplemental information that broker-dealers and others file with the SEC. These standards are effective for fiscal years ending on or after June 1, 2014.
U.S. Commodity Futures Trading Commission
  • In November 2013, the CFTC approved a final rule on enhancing customer protections, which, in part, will require audits of futures commission merchants (FCMs) to be performed in accordance with PCAOB standards by a PCAOB-registered firm that “must have undergone a PCAOB inspection”. Find out more.

Securities Investor Protection Corporation

  • March 2016 - SEC approved SIPC Rule 600, Rules Relating to Supplemental Report of SIPC Membership. These rules now prescribe the form and content of the SIPC supplemental report and require that a registered broker-dealer must file a report with SIPC, and no longer with the SEC. The SIPC maintains Member FAQs where member firms and their auditors can find information regarding SIPC forms, membership, and how and where to file reports. For more information, click here.

Expert Panel Recommended Guidance

Publications and CPE


Past Meeting Highlights

2017

June, 2017

March 8, 2017

2016 and Prior

Archived Meeting Highlights

Members of the Expert Panel

Christopher Donovan, Chair Deloitte & Touche LLP

Jeffrey Alfano, Oppenheimer & Co

David Bonnar, Morgan Stanley

Tim Bridges, Goldman, Sachs & Co

Nancy Grimaldi, EisnerAmper LLP

John Iacobellis, BDO

Paul Lameo, PricewaterhouseCoopers LLP

Paul Nockels, McGladrey LLP

Daniel Palomaki, Citigroup

Karl Ruhry, KPMG LLP

Keith Wenk, Edward Jones

Stephen A. Zammitti, Ernst & Young LLP

Learn more about the expert panel members by reading their biographies.


Staff Contacts

Irina Portnoy, Senior Manager





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