The Securities and Exchange Commission (SEC) is contemplating new regulations that would create tougher audits for broker-dealers that do not use outside firms to handle client funds. Essentially, public accounting firms would have greater authority to conduct audits to ensure that brokerage firms are in compliance with existing rules. Borne out of the 2009 rules intended to prevent future financial scandals, money managers would have to comply with several rules involving the protection of client funds. Read more in the New Junky Journal here.
