SecuritiesAdviser
SecuritiesAdviser provides news and analysis for the securities and commodities industry.
Broker-dealers, banks, transfer agents and other financial intermediaries will soon be required to report accurate cost-basis information under a new law to help the IRS combat an estimated $11 billion in annual capital gains underreporting. Beginning in 2011, broker-dealers and other financial intermediaries will be required to track and report not only cost-basis information, but also the adjusted cost basis of any security that is sold. In this issue, find out why broker-dealers should prepare now or pay later.
Also in this issue:
- Are you ready for the Options Symbology Initiative (OSI)?
- What you need to know about derivatives reform legislation
- Push for SEC assessment of customer assets may change FOCUS reports
Related documents
Cost-basis reporting mandate: Prepare now or pay later This issue explores the new cost-basis reporting mandate for broker-dealers, the Options Symbology Initiative (OSI), derivatives reform legislation and how the SEC’s push for more information in assessments may impact FOCUS reports.
Broker-dealers brace for changing environment From more complete customer statements to SEC proposed rules, broker-dealers face a changing landscape. This issue discusses what changes may be in store and how broker-dealers can prepare.
Enterprise risk management: A financial services survival kit This issue explains how financial services firms can use enterprise risk management (ERM) to align risk with overall strategy and ultimately help preserve and enhance value.
Intervention: The financial close process This issue points out common problems associated with the financial close process and suggests ways to build a better process with higher quality results. Also find out what emerging accounting and operational issues broker-dealers face in the coming months.
Under one roof: Consolidation of regulators This issue covers the implications of this possible evolution and poses items for consideration, including the necessity of a centralized clearing organization and renewed diligence when measuring liquidity risk. It also also covers currently emerging issues for broker-dealers, from clearing agreement rules to auction-rate securities.
Risky business of weak supervisory controls One need look no further than the recent and much-publicized rogue trading scandal to see what can happen when supervisory controls fail. Although the ultimate story and facts will take many months or years to come to light, early reports indicate an alleged rogue trader was able to bypass internal controls to make unauthorized trades totaling upward of $73 billion. Financial institutions should let situations like this serve as the impetus to re-examine their own risk management models and systems and inspire renewed diligence enforcing internal and supervisory controls.
Broker-dealer trends and certain issues related to introducing broker-dealers In a climate of such growth potential, broker-dealers are faced with the challenge of balancing performance with compliance. In this issue of SecuritiesAdviser, Audit Partner Rich Flowers outlines recent broker-dealer trends and issues related to introducing broker-dealers.