Broker-Dealer Accounting Virtual Conference

CONFERENCE AGENDA

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

State of the Brokerage Industry
9:00 – 9:45 AM
This session will provide an overview of the broker-dealer landscape, deliver an update on regulatory initiatives, cover the impact of regulations on capital formation, present related innovations, and offer a glimpse into the future of the broker-dealer industry. Topics to be discussed include:
• Key Regulators of the Securities Industry
• Self-Regulatory Organizations (SROs)
• Equity Market Structure
• Current Issues in Trading Equities
   – The maker-taker model
   – Access fees
   – Market data fees
   – Fragmentation
• Current Proposals to Address Issues in Equity Trading
   – Transaction Fee Pilot Program
   – Market data fees
• Bond Market Structure
   – Issues in bond markets
• SIFMA Capital Committee Focus
• SEC SBSD Rules
• CFTC SD Rules
• SIFMA Actions to Address COVID-19

Break
9:45 – 9:50 AM

Regulatory Trends, Industry Initiatives & Challenges
9:50 – 11:05 AM
Broker-dealer firms continue to be challenged by regulatory, accounting and auditing issues. This session will focus on the challenges faced by the broker-dealer industry and provide insights into the changes and evolution of the market, as well as supply an overview of FINRA priorities. Topics to be discussed include:
• Recent Guidance: COVID-19 Related FinOp Issues
• Other Recent Regulatory Guidance
   – Regulatory Notice 19-11 – Underwriting Backstop Agreement Net Capital Treatment
   – SEC No-Action Letter: Treatment of Operating Leases under Rule 15c3-1
   – Regulatory 19-08 – Guidance on FOCUS Reporting for Operating Leases
   – Amendments to the Broker-Dealer Financial Reporting Rule
• FINRA Risk Monitoring and Examinations
• FINRA Key Topic Pages

Break
11:05 – 11:10 AM

Technical Accounting Update
11:10 AM – 12:10 PM
• Accounting for leases
• Current Expected Credit Losses (CECL)
• Revenue Recognition—year 2 considerations
• Adoption Reminders: Statement of Cash Flows and Restricted Cash

Lunch
12:10 – 12:55 PM

SEC Standard of Conduct Rulemakings: Regulation Best Interest & Form CRS
12:55 – 1:55 PM
• Overview
   – Regulation Best Interest (Reg BI)
   – Form CRS
• Retail Customers and Retail Investors
   – Definitions
   – Legal representatives
   – Identifying retail customers and retail investors
• Recommendations
   – Definition
   – Types
• Compliance with Reg BI
   – Care obligation
   – Requirements
   – Recommendation of account types and rollovers
   – Retail customer investment profile
   – Determining and documenting “Reasonable Basis”
   – Significant investments/complex and risky products
   – Disclosure
   – Conflict of Interest Obligation
   – Compliance Obligation
• Form CRS
   – Who must receive Form CRS?
   – Delivery and filing requirements
• Books and Records Requirement

Break
1:55 – 2:00 PM

Internal Controls—Hot Topics
2:00 – 2:45 PM
• Overview
   – 17a-5 Compliance Report
   – Financial Responsibility Rules (FFRs)
   – Internal Control Over Compliance (ICOC)
• Regulatory Findings and Themes
   – Management review controls
   – Information produced by the entity
   – Third party service organizations
• Impact of COVID-19
   – Regulatory relief and oversight
   – Control challenges faced with working from home
• Enhancement Opportunities
   – Governance Structure
   – Scope and mix of controls

Break
2:45 – 2:50 PM

Comments from the CFTC   
2:50 – 3:50 PM
Regulators from the CFTC will update you on the latest hot button issues and the most effective ways to handle them.

Break
3:50 – 3:55 PM

Auditing Standards Update
3:55 – 4:55 PM
• Auditing accounting estimates
• Testing the company’s process
• Developing an independent expectation
• Evaluating transactions after the measurement date
• Risks of material misstatement related to fair value of financial instruments
• Third-party pricing information
• Using the work of an auditor-engaged specialist
• COVID-19
• Cryptoassets

Conference Ends
4:55 PM