The Securities and Exchange Commission (SEC) on Wednesday unanimously proposed amendments to its broker-dealer financial reporting rule in a move the agency said would strengthen “the audits of broker-dealers as well as the SEC’s oversight of the way broker-dealers handle their customers’ securities and cash.”
The SEC’s proposal builds upon rules adopted in December 2009 that strengthened the protections provided to investors who turn their assets over to investment advisors.
The proposal is out for a 60-day comment period.
“When investors hand their assets over to a broker-dealer, they trust that their broker-dealer will hold and invest the assets as directed,” said SEC Chairman Mary Schapiro (left), in comments at the open meeting. “To protect investors and help maintain confidence in the market, we must take strong steps to help safeguard the assets held by broker-dealers.”