Legislation Proposed to Ease Audit Requirements for Small Broker-Dealers
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
House Financial Services Chairman French Hill and Senator Tom Cotton have drafted legislation aimed at relieving small, privately held broker-dealers from tough audit requirements. These requirements date back to the 2002 Sarbanes-Oxley Act, which was enacted following the Enron and WorldCom accounting scandals. The measure would absolve these small brokers from hiring an audit firm registered with the PCAOB for annual inspections.
From rollcall.com
Why it matters
The current PCAOB audits, expanded by the 2010 Dodd-Frank Act, are significantly costly for small brokers. The proposed legislation seeks to reduce the financial burden on these firms, which some report are struggling to survive due to these expenses.
From rollcall.com
Who's involved
- French HillU.S. Representative and Chairman of the House Financial Services Committee who drafted the legislation.
- HouseThe legislative body where French Hill holds a formal role.
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The entities involved
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French Hill
U.S. Representative from Arkansas
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Enron
American energy company