Extension of Order Regarding Broker-Dealer Financial Statement Requirements Under Section 17 of the Exchange Act, 75779 [E6-21475]
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Federal Register / Vol. 71, No. 242 / Monday, December 18, 2006 / Notices
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[FR Doc. E6–21541 Filed 12–15–06; 8:45 am]
BILLING CODE 6325–39–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54920]
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Extension of Order Regarding BrokerDealer Financial Statement
Requirements Under Section 17 of the
Exchange Act
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VerDate Aug<31>2005
16:16 Dec 15, 2006
Jkt 211001
The Securities and Exchange
Commission (‘‘Commission’’) is
extending its Order, originally issued on
August 4, 2003,1 and extended on July
14, 2004 2 and on December 7, 2005 (the
‘‘2005 Order’’) 3 under Section 17(e) of
the Securities Exchange Act of 1934
(‘‘Exchange Act’’), regarding audits of
financial statements of broker-dealers
that are not issuers (‘‘non-public brokerdealers’’). The 2005 Order provided that
non-public broker-dealers may file with
the Commission and may send to their
customers documents and information
required by Section 17(e) certified by an
independent public accountant, instead
of by a registered public accounting
firm, for fiscal years ending before
January 1, 2007.
Section 17(e)(1)(A) of the Exchange
Act requires that every registered
broker-dealer annually file with the
Commission a certified balance sheet
and income statement, and Section
17(e)(1)(B) requires that the broker1 Exchange Act Release No. 48281, 68 FR 47375
(August 8, 2003).
2 Exchange Act Release No. 50020, 69 FR 43482
(July 20, 2004).
3 Exchange Act Release No. 52909, 70 FR 73809
(December 13, 2005).
PO 00000
Frm 00072
Fmt 4703
Sfmt 4703
75779
dealer annually send to its customers its
‘‘certified balance sheet.’’ 4 The
Sarbanes-Oxley Act of 2002 (‘‘Act’’) 5
established the Public Company
Accounting Oversight Board (‘‘Board’’) 6
and amended Section 17(e) to replace
the words ‘‘an independent public
accountant’’ with ‘‘a registered public
accounting firm.’’ 7
The Act establishes a deadline for
registration with the Board of auditors
of financial statements of ‘‘issuers,’’ as
that term is defined in the Act.8 The Act
does not provide a deadline for
registration of auditors of non-public
broker-dealers.
The 2005 Order expires January 1,
2007. Application of registration
requirements and procedures to auditors
of non-public broker-dealers is still
being considered. The Commission has
therefore determined that extending the
Order for two years is consistent with
the public interest and the protection of
investors.
Accordingly,
It is ordered, pursuant to Section 17(e)
of the Exchange Act, that non-public
broker-dealers may file with the
Commission a balance sheet and income
statement and may send to their
customers a balance sheet certified by
an independent public accountant,
instead of by a registered public
accounting firm, for fiscal years ending
before January 1, 2009.
By the Commission.
Nancy M. Morris,
Secretary.
[FR Doc. E6–21475 Filed 12–15–06; 8:45 am]
BILLING CODE 8011–01–P
4 Exchange Act Rule 17a–5 requires registered
broker-dealers to provide to the Commission and to
customers of the broker-dealer other specified
financial information.
5 Public Law 107–204.
6 Section 101 of the Act.
7 Section 205(c)(2) of the Act.
8 Section 2 of the Act defines ‘‘issuer.’’ Section
102 of the Act establishes a specific deadline by
which auditors of issuers must register with the
Board. Based on the statutory deadline of 180 days
after the Commission determined the Board was
ready to carry out the requirements of the Act, that
date was October 22, 2003. See Exchange Act
Release No. 48180 (July 16, 2003).
E:\FR\FM\18DEN1.SGM
18DEN1
]]>Agencies
[Federal Register Volume 71, Number 242 (Monday, December 18, 2006)]
[Notices]
[Page 75779]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21475]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54920]
Extension of Order Regarding Broker-Dealer Financial Statement
Requirements Under Section 17 of the Exchange Act
December 12, 2006.
The Securities and Exchange Commission (``Commission'') is
extending its Order, originally issued on August 4, 2003,\1\ and
extended on July 14, 2004 \2\ and on December 7, 2005 (the ``2005
Order'') \3\ under Section 17(e) of the Securities Exchange Act of 1934
(``Exchange Act''), regarding audits of financial statements of broker-
dealers that are not issuers (``non-public broker-dealers''). The 2005
Order provided that non-public broker-dealers may file with the
Commission and may send to their customers documents and information
required by Section 17(e) certified by an independent public
accountant, instead of by a registered public accounting firm, for
fiscal years ending before January 1, 2007.
---------------------------------------------------------------------------
\1\ Exchange Act Release No. 48281, 68 FR 47375 (August 8,
2003).
\2\ Exchange Act Release No. 50020, 69 FR 43482 (July 20, 2004).
\3\ Exchange Act Release No. 52909, 70 FR 73809 (December 13,
2005).
---------------------------------------------------------------------------
Section 17(e)(1)(A) of the Exchange Act requires that every
registered broker-dealer annually file with the Commission a certified
balance sheet and income statement, and Section 17(e)(1)(B) requires
that the broker-dealer annually send to its customers its ``certified
balance sheet.'' \4\ The Sarbanes-Oxley Act of 2002 (``Act'') \5\
established the Public Company Accounting Oversight Board (``Board'')
\6\ and amended Section 17(e) to replace the words ``an independent
public accountant'' with ``a registered public accounting firm.'' \7\
---------------------------------------------------------------------------
\4\ Exchange Act Rule 17a-5 requires registered broker-dealers
to provide to the Commission and to customers of the broker-dealer
other specified financial information.
\5\ Public Law 107-204.
\6\ Section 101 of the Act.
\7\ Section 205(c)(2) of the Act.
---------------------------------------------------------------------------
The Act establishes a deadline for registration with the Board of
auditors of financial statements of ``issuers,'' as that term is
defined in the Act.\8\ The Act does not provide a deadline for
registration of auditors of non-public broker-dealers.
---------------------------------------------------------------------------
\8\ Section 2 of the Act defines ``issuer.'' Section 102 of the
Act establishes a specific deadline by which auditors of issuers
must register with the Board. Based on the statutory deadline of 180
days after the Commission determined the Board was ready to carry
out the requirements of the Act, that date was October 22, 2003. See
Exchange Act Release No. 48180 (July 16, 2003).
---------------------------------------------------------------------------
The 2005 Order expires January 1, 2007. Application of registration
requirements and procedures to auditors of non-public broker-dealers is
still being considered. The Commission has therefore determined that
extending the Order for two years is consistent with the public
interest and the protection of investors.
Accordingly,
It is ordered, pursuant to Section 17(e) of the Exchange Act, that
non-public broker-dealers may file with the Commission a balance sheet
and income statement and may send to their customers a balance sheet
certified by an independent public accountant, instead of by a
registered public accounting firm, for fiscal years ending before
January 1, 2009.
By the Commission.
Nancy M. Morris,
Secretary.
[FR Doc. E6-21475 Filed 12-15-06; 8:45 am]
BILLING CODE 8011-01-P
