Broker-Dealer Accounting Conference Self-Study Webinar

Welcome & Opening Remarks
8:45 – 9:00 AM

Broker-Dealer Industry Perspective
9:00 – 9:30 AM
This session will highlight all the latest challenges and opportunities in the broker-dealer industry and what to expect in the future from the perspective of financial professionals. A highly qualified expert will demonstrate how accountants can safely and efficiently keep up with changing regulatory compliance requirements, new accounting pronouncements, digital transformation and other potential risks. We will focus on:
• Current market conditions
• SEC and FINRA rulemaking
• Financial reporting/FASB hot topics
• AICPA stockbrokerage and investment banking expert panel topics

Break
9:30 – 9:35 AM

Regulatory Trends, Industry Initiatives & Challenges
9:35 – 10:35 AM
Broker-dealer firms continue to be challenged by regulatory, accounting, and auditing issues. This session will be led by experts from FINRA and will provide insights into the changes and evolution of the market, as well as FINRA's latest priorities. Topics to be discussed include:
• Accounting and reporting issues impacting broker/dealers
• Regulatory guidance on exemption reports
• Hot topics and recent SEC rulemaking
• Oversight observations
• FINRA topics and FAQs

Break
10:35 – 10:40 AM

PCAOB Update
10:40 – 11:40 AM
This session offers auditors with the latest developments at the PCAOB directly from an inspection leader. This includes leadership changes, inspection trends, new auditing standards, and more. Attendees will gain practical insights into common inspection findings and the actions firms can take to better their audit quality and prepare for future inspections. Key topics include:
• Recent PCOB leadership changes and the impact it has made on inspections, enforcement and standard-setting
• Key inspection results, recurring audit deficiencies, and focus areas for public company and broker-dealer audits
• New and upcoming PCAOB standards, including QC 1000, technology-assisted audit procedures and more
• Practical strategies for strengthening quality control systems, as well as preparing for the current inspection cycle

Break
11:40 – 11:45 AM

Net Capital & Customer Protection Rule Compliance
11:45 AM – 12:30 PM
As SEC and FINRA regulations continue to evolve, broker-dealers must adapt to new financial responsibility requirements.This session highlights the significant regulatory developments impacting the SEC’s Net Capital Rule (Rule 15c3-1) and Customer Protection Rule (Rule 15c3-3), as well with the practical considerations regarding the implementation. Discussions include:
• Net capital requirements for open contractual commitments
   – Common compliance challenges
   – Guidance for meeting Rule 15c3-1 obligations
• Record retention requirements
   – SEC and FINRA requirements and challenges related to broker-dealer recordkeeping
   – Best practices for compliant retention systems
      • Expanded collateral eligibility under the Customer Protection Rule
         – New equity-for-equity (E4E) collateral framework for securities lending
         – Operational controls for eligible collateral, daily valuation, and customer allocations
         – Technology and compliance enhancements to support new requirements
• Enforcement trends and insights
   – Recent actions related to broker-dealer financial responsibility rules
   – Potential impacts on retail trading activity
   – Shift to intraday customer risk monitoring and margin management
• Capital and custody: crypto and digital asset securities
   – Regulatory developments impacting broker-dealers
   – Financial responsibility and risk considerations for broker-dealers
   – Updated SEC guidance on qualifying payment stablecoins
   – Capital treatment for Bitcoin, Ether, and digital asset positions
• New rulemaking: daily reserve formula calculations
   – Summary of Rule 15c3-3 daily reserve computation requirements
   – Operational impact and readiness planning
   – Emerging digital asset custody expectations under Rule 15c3-3
   – SIPC coverage considerations for digital assets 
• Preparing for the future
   – Strengthening data governance, reconciliation, and automated regulatory reporting
   – Managing intraday liquidity and operational risk
   – Building systems capable of demonstrating ongoing compliance and regulation in real time

Lunch
12:30 – 1:15 PM

SEC Enforcement Issues
1:15 – 2:30 PM
The SEC has undergone significant changes, returning to a simpler “back to basics” approach concerning enforcement. Using recent examples, this session will give you a solid understanding of what has changed, and how the changes will impact broker-dealer firms going forward. We will discuss:
• Overall trends in enforcement actions between 2025 and 2026
• Priorities for the SEC exam
   – Structural changes to the Broker Dealer and Exchange program
   – AML, Cybersecurity, Regs S-ID and S-P, Emerging Financial Technology
   – The use of Crypto
• PCAOB trends and priorities
   – Electronic communications
   – Digital asset securities
• Bank Secrecy Act and anti-money laundering compliance
• Cybersecurity regulations 
• SEC legislative crypto updates 

Break
2:30 – 2:35 PM

Technical Accounting Update
2:35 – 3:35 PM
FASB’s recent major changes will have an impact on broker-dealers in many important areas. This session will update you on what these changes are and show you the most effective ways to handle them. An expert will discuss the following:
• Key accounting changes required by Staff Accounting Bulletin 122
   – Introducing new tabular expense disclosures
• Disaggregation of Income Statement Expenses
• Proposed hedge accounting improvements, including expanding hedge accounting eligibility
• Definition of a public business entity
   – Clarifies which entities qualify as PBE’s
• Improvements to income tax disclosures, including info on an increase in detailed tax reporting
• Recently issued ASUs 
   – Key updates across all accounting topics
   – A focus on improving disclosure, consistency, and financial reporting

Break
3:35 – 3:40 PM

Digital Assets & Fintech – Emerging Issues
3:40 – 4:40 PM
As digital assets, blockchain applications, and fintech innovations continue to evolve, broker-dealers face a complex mix of regulatory, operational, and compliance challenges. We will discuss the following:
• The use of digital and crypto assets by broker-dealers
• Current updates and what to expect in the future
• Fintech integration in broker-dealer operations and expectations going forward
• Custody and safeguarding obligations
• The increase of AI, Tokenization & Programmable compliance
• Basis tracking and accounting, including impact of distributed ledger technology 
• Defining IRS Pronouncements
• The recognition of digital assets

Closing Remarks
4:40 – 4:50 PM

Conference Ends
4:50 PM

Tunde Adeyemo, Managing Director, EY

Stephen Attard, Inspection Leader, Division of Registration and Inspections, PCAOB

James D'Arcangelo, Director, BDO

Joseph David, Senior Principal Specialist, Credit Regulation at FINRA

John Iacobellis, Assurance Partner, BDO

Tyler Kane, Director, Office of Financial & Operational Risk Policy, FINRA

Laura Lisi, Assurance Principal, BDO

Taylor McFarland, Former Inspections Specialist, PCAOB, Professional Practice Director, Audit Quality, BDO

Anne McKinley, Assistant Regional Director, Division of Enforcement, SEC

Laura Pruitt, Partner, Jones Day

Mark Ramler, Director, Office of Financial & Operational Risk Policy, FINRA

Zohaib Qamar, Partner, CitrinCooperman

Chris Springer, Managing Director, RSM US LLP

Stephen (Chip) Verrone, Managing Director, EY

Anthony Vinci, Director, Financial and Operational Risk Policy, FINRA

Annette Vitale, Audit Manager, CFTC

Mike Walters, Regional Associate Director, PCAOB

Bill Witt, Consulting Director, Accounting and Transaction Services at MorganFranklin

DETAILED LEARNING OBJECTIVES

• Identify significant market and economic developments affecting the broker-dealer industry

• Recognize recent SEC, FINRA, and CFTC rulemaking initiatives impacting broker-dealers

• Identify emerging regulatory risks and trends affecting broker-dealer operations

• Describe key financial reporting issues affecting broker-dealers

• Recognize recent FASB Accounting Standards Updates applicable to broker-dealers

• Identify issued but not yet effective accounting standards and their potential implications for financial reporting

• Explain the accounting requirements related to equity securities subject to contractual sale restrictions

• Recognize accounting considerations associated with common-control lease arrangements

• Identify recent developments in segment reporting requirements and expense disaggregation disclosures

• Describe the accounting treatment for induced conversions of convertible debt instruments

• Explain the objectives of the SEC's amendments to the Customer Protection Rule

• Identify the requirements associated with daily reserve computations under Rule 15c3-3

• Recognize the importance of liquidity management and balance sheet integrity under regulatory scrutiny

• Identify recent SEC examination priorities affecting broker-dealers

• Describe current SEC enforcement trends and areas of regulatory focus

• Recognize regulatory developments involving digital assets and crypto-related activities

• Explain the purpose and role of the PCAOB inspection process

• Identify common audit deficiencies and areas requiring remediation identified by the PCAOB

• Recognize required communications between auditors and audit committees

• Identify fraud risk considerations and related auditor responsibilities under PCAOB standards

• Describe the characteristics and functions of blockchain technology and distributed ledger technology

• Identify key features and risks associated with digital assets and financial technology innovations

• Recognize anti-money laundering and supervisory expectations associated with digital asset activities

• Identify governance, internal control, and risk management considerations related to emerging technologies

• Evaluate the impact of recent accounting, regulatory, and technological developments on broker-dealer financial reporting, compliance programs, and risk management practices

• Assess the implications of emerging technologies on operational processes and internal controls within broker-dealer organizations

• Recognize the importance of maintaining effective compliance frameworks in an evolving regulatory environment