SEC filing for broker dealers
As this turbulent economic climate continues to churn, many changes are brewing at the steps of Wall Street, including SEC filing. Hedge fund managers and broker-dealers have become the latest targets as the government pushes for SEC filing for all financial firms. SEC filing has been a hot topic in congress as the Hedge Fund Transparency Bill was introduced on January 29, 2009. The bill proposes that all venture capital, private equity, broker-dealers and hedge funds must register with the SEC as investment advisors. Even President Obama and Treasury Secretary, Tim Geithner, have been vocal about SEC filing and have both been trying to pass legislation about the matter on Capitol Hill.
But there is another source pushing for SEC filing and adding pressure to investment firms; the investor. Since the economic collapse in 2008, investor confidence has been at an all time low. Add to that the bevy of corruption unearthed in the securities industry, and the average investor is becoming increasingly more comfortable on the sidelines, instead of in the game. For those investors who do still dare to play the game, the rules have dramatically changed. The fact is that more and more investors are conducting much stricter due diligence than in the past, and are looking for broker-dealers who have registered with the Securities and Exchange Commission and have a strong compliance program. Because of these uncertain times, SEC filing is becoming the norm and any broker-dealer ignoring this is costing himself and his firm dearly.
SEC filing can be a lengthy and complex process without outside help. In order for a broker-dealer firm to become compliant with SEC regulations, the broker-dealer manager must follow a strict and ever changing set of rules laid out by the SEC. In order for the broker-dealer to meet the requirements of SEC filing he will need to update all files, including representative files, account files, correspondence files, advertising files, costumer complaint files, and new account applications. When the broker-dealer firm is eventually audited by the SEC to see that it is continuing to meet the requirements of broker-dealer regulation, all of the above files will be thoroughly examined by an SEC official to determine compliance, including a complete review of the firm's Training Plan, Business Continuity Plan, and Anti-Money Laundering procedures. These facts are what can make SEC filing a very complex, time consuming and often frustrating experience.
In order for an investment firms SEC filing to go smoothly, the firm needs to hire an experienced outside accounting and compliance company. A good accounting and compliance company will be able to alleviate much of the stress and frustration that comes with SEC filing. A good accounting and compliance firm will also always recommend all broker-dealers develop a compliance program complete with a Registration plan, a CCO, (chief compliance officer) a Compliance Manual, and an Annual Audit. Do not use an accounting and compliance firm who does not recommend these steps, or that does not offer mock-SEC audits, CCO training, and who will not write or revise your Compliance Manual. Any experienced accounting and compliance firm will always provide these services and more to help their clients with the SEC filing process.
If you would like to receive more information about SEC filing and how an accounting and compliance expert can help, please fill out the form to the right of the page and an accounting professional will contact you regarding your complimentary consultation.
