SEC Issues Guidance on the Recording of Expenses and Liabilities by Broker-Dealers
- Topics:
- Equity
- Tags:
- Agreement,
- Dorsey & Whitney,
- SEC
- Source:
- Dorsey & Whitney
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Overview: It is common practice for a U.S. registered broker-dealer to enter into an expense-sharing agreement with its parent company or affiliate whereby the parent company or affiliate provides the broker-dealer with certain securities trading services and related administrative functions, as well as certain space, facilities, equipment and other services in exchange for a fee. There has been concern expressed by the NASD and NYSE that some broker-dealers may be incorrectly omitting expenses and liabilities subject to these agreements on the broker-dealer’s books and records, resulting in inaccurate disclosure of the broker-dealer’s performance and financial condition. The white paper provides an overview to the guidance issued by SEC recording of expenses and liabilities by Broker-Dealers.
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Format: HTML | Date: Dec 2003 | Pages: 1
