SEC To Propose Audit Requirements for Investment Advisors, Possibly by Mid-May
On April 6th, SEC Chairwoman Schapiro told the Counsel of Institutional Investors that the Commission was looking into “many potential reforms” for market professionals and intermediaries, including brokers, advisors and credit rating agencies. Among the Commission’s early ideas, Schapiro added, were annual unannounced audit requirements for market professionals who directly hold client assets, in order to "confirm the safekeeping of those assets.”
The Wall Street Journal has now reported that the SEC plans to propose these audit rules, and other reforms for market professionals, possibly as soon as mid-May. Citing an SEC official “familiar with the matter,” the Wall Street Journal reports that the new rules, designed to safeguard customer assets, are tentatively scheduled to be proposed on May 14th.
The Wall Street Journal article is available here [log-in required]. A transcript of Chairwoman Schapiro’s address to the Counsel of Institutional Investors is available on the SEC’s website.
