December Dates

These kinds of dates are not the fun ones, but they're worth paying attention to:

1. December 10: Due date for notification of change of accountant. If you have appointed a different accountant to do your annual audit, you have to tell SEC and FINRA about it. Please reference my blog entry of last December for specifics--the information is still good and you'll save me time. You're great: thanks!

2. December 13: FINRA renewal payments due. Remember, even if you disagree with what is on your preliminary renewal statement, pay it! You can make amendment filings now that will be reflected on the final statement (Jan. 3): at that point you can get a refund if you overpaid. Here is a link to FINRA's page on payment options.

3. December 15: Effective date of new Rule 3270 requiring reps to pre-notify the firm of their new outside business activities--and requiring the firm to consider those activities in the context of its securities business. I blabbed about this in a recent (yeah, October was recent in my mind) entry. See here.

4. December 23: Deadline for all year-end filings on CRD. Remember, you can post-mark termination filings (like dropping states or dropping reps) to December 31 if you want.

5. December 31: End of your right to use self-congratulatory Privacy Notices. The use of SEC's "model form" is advisable for those who want to be sheltered by the safe harbor. Not sure what I'm talking about? Search my blog for "Privacy Notices" and you'll hear all about it. 

6. December 31: The last day of the year. Oh, and as of the next day, in theory, the FACT ACT is enforceable. Since that effective date changes more often than I do when getting ready for a holiday party, I'm not convinced it will stick. See this blog for details and sarcasm.

Happy December, everyone!

Change of Accountant?

Hey, if you hired a new accountant to do your year-end audit, remember that you have to tell SEC about it. You can find the Designation of Accountant form at this link:

http://www.finra.org/web/groups/industry/@ip/@comp/@regis/documents/industry/p009841.pdf


Here is the delivery information I have:

Constance Jackson
SECURITIES AND EXCHANGE COMMISSION
mailstop - 6628
100 F Street, NE
Washington, DC 20549
fax # 202 772 9273
phone # 202 551 5526

My notes say this is due by December 10. So if you haven't done this yet, hurry.

Rule Reference: SEC 17a-5(f)(2)

SIPC Supplemental Report: Last Helpful Tip

I'm getting bored with this subject, I have to admit... but I looked into something and thought I'd pass along what I learned.

The "e-4 report," or "supplemental report" required under SEA 17a-5(e)(4), is a newly-unearthed requirement for SIPC members (read my two earlier blogs on this if you're confused right now: Sept. 24 and Nov. 10). FINRA sent out a little blurb that stated, "If your firm is a SIPC member and has net operating revenues of more than $500,000, your firm's auditor must complete the SIPC Supplemental Report..."

A helpful reader (I have readers! and some of them are helpful!!) was looking for the source of that $500,000 threshold. I, being busy, promised to look for it, but he, being helpful, found it himself and forwarded me FINRA's 89-25 NtM...here is the link to that: http://finra.complinet.com/en/display/display_main.html?rbid=2403&element_id=1400

This old Notice includes an SEC no-action letter that describes the $500,000 threshold. But SEC uses the term "total revenues" and FINRA, in said Notice, uses the term "gross annual revenue." Both of these terms contradict FINRA's newest descriptor, "net operating revenues."

So I called a woman at SIPC who is smart and kind and--again, this word--helpful! She explained that yes, it is indeed "total revenue"--that is, before deductions--and that the SEC no-action letter is the only reference to that exclusion/threshold. You won't find it anywhere else. She also surmised that this new assessment equation will be in place for a while--so get used to it, folks!

If you work for FINRA and you are reading this, a) why are you reading my blog? and b) to be helpful (pay it forward), tell someone at your shop about this discrepancy/miscommunication, so that firms may do what is required without being confused.

Thanks to Mr. A.C., who inspired today's blog entry.