Mar 17, 2023 | Uncategorized

Broker Dealer Update: FINRA shares bank concern

Did you bank make the list?

Here at MCCPA we are gathering information about the banking trouble touching a number of clients and affecting our industry. We will share our finding with you as it is released.  We feel that banking and the ever changing regulatory environment affects all of us and we consistently looking for ways to keep our clients informed of new regulatory happenings.

We just learned that FINRA is proactively reaching out to BDs who have banking relationships with certain regional banks that may have liquidity issues .

Finra specifically referenced

  • Silicon Valley Bank (SVB),
  • Silvergate
  • Signature Bank,
  • First Republic
  • Pac West
  • Western Alliance

FINRA has also reaching out to Broker Dealers to inquire about specific concerns or trouble accessing their funds.

This prompted our clients to reach out to us and ask if they should disclose the matter in the footnotes.  We are currently suggesting that if a client (all clients, not just BDs) has a material exposure to any of these banks, they disclose it in the subsequent events footnote with a brief description of the specific bank’s current situation.   This is obviously a very fluid situation and we will need to adjust as necessary. 

Please reach out with any questions or concerns regarding the audit footnotes.