The regulatory and economic environments are rapidly changing for broker-dealers and their clients. Thinning margins, decreasing commission fees and revenue shortfalls are battering the independent broker-dealer industry. Add to that market abuses and scandals of the past year, and you will find organizations seeking ways to restore confidence in their operations and performance. The need for transparency and compliance will become increasingly important as broker-dealers weigh options for survival including mergers and acquisitions.
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Moreover, broker-dealers can be assured of more regulatory oversight in the months and years ahead. Until recently, registration of auditors of nonpublic broker-dealers was not necessary. However, once the SEC order precluding registration expired, financial statements of nonpublic broker-dealers for fiscal years ending after Dec. 31, 2008, must now be certified by a registered public accounting firm.
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| How We Can Help: |
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| Rothstein Kass is an esteemed, leading accounting firm serving broker-dealers and can provide the guidance needed to understand and comply with any SEC and FINRA regulations. We provide a range of services to broker-dealers including: |
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| Management consulting |
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| • | Initial capitalization and organizational structure | | • | Consulting relative to regulatory agency memberships | | • | Assistance to accounting and back office operations regarding net capital, customer reserve computations and internal accounting controls | | • | Assistance in review and preparation of regulatory reports (FOCUS report, etc.) | | • | Consulting in regard to regulatory examinations | | • | SAS 70, Compliance and Internal Control Reviews | | • | Financial Services Advisory | |
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| Audit |
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| As the independent auditors of numerous broker-dealers, our commitment is to generate timely and cost efficient audit reports and to provide management with the opportunity to react to financial information and recommendations by us during our audit. Our clients include: |
| • | New York Stock Exchange members | | • | Government / municipal institutional broker-dealers | | • | Retail broker-dealers | | • | Over the counter market makers and retailers | | • | Floor brokers and specialists | | • | Internet brokerage | | • | Registered investment advisors | | • | Day traders | | • | Investment partnerships | | • | New York Mercantile Exchange members | |
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| These entities have maintained self-clearing, omnibus, and fully-disclosed clearing arrangements and range in size from operations with minimal support staff to full service broker-dealers employing over 100 registered representatives. |
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| Tax |
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| We advise our clients on both the tax and economic effects in all areas of taxation, including mergers and acquisitions, business valuations, reorganizations, employee benefit plans (profit sharing, 401K, pension, cafeteria, ESOPs, etc), and minimizing corporate Federal, state and local income and payroll taxes. We also represent clients before the Internal Revenue Service and other taxing authorities if any audits arise. |
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| Registered Investment Advisors (RIAs) |
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| RIAs are also faced with increased regulatory scrutiny. In addition to laws that may be imposed by individual states, Registered Investment Advisors must comply with national statutes enacted by the Securities and Exchange Commission, including the Investment Advisers Act of 1940 and the Investment Company Act of 1940. |
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| Records of an RIA are subject to examination by the SEC at any time, so it is critical that books, records and statements are current and accurate. In addition, more extensive records must be kept when advisers have custody of client securities or funds. Our experience in the financial services industry and specifically handling the issues faced by Registered Investment Advisors makes us well equipped to handle your complex needs and reporting requirements. |
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| • | Regulatory audits | | • | Advise in conjunction with Company's legal counsel as to custody issues | | • | Regulatory compliance including minimum net capital computation; and certificate required by Rule 206(4) - 2 under Investment Advisers | | • | AIMR performance presentation | | • | Agreed upon procedure letters for management fee payments and fund withdrawals for non-audit clients | | • | Tax projections | |
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