Audit & Accounting Brief: Take advantage of the specialized functions in QuickBooks
QuickBooks® provides an all-in-one solution that helps some small and medium-sized businesses manage their finances. While QuickBooks provides the accounting backbone for many companies, it has advanced features that go beyond basic bookkeeping tasks. For example, the time-tracking functionality in…
Tax Brief: Protect the advertising deductions of your business
Under tax law, businesses can generally deduct advertising and marketing expenses that help keep existing customers and bring in new ones. This valuable tax deduction can help businesses cut their taxes. However, in order to be deductible, advertising and marketing…
Accounting Brief: 5 accounting rules that may affect your business in 2023
1. Targeted improvements for long-term insurance contracts Accounting Standards Update (ASU) No. 2018-12, Financial Services — Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued in 2018, but its effective date was deferred twice. It requires…
Audit & Accounting Brief: Common accounting pitfalls for startups to avoid
Accounting is a critical element when launching a successful business venture. Unfortunately, it’s also an area where startups tend to make mistakes. Here are some common (and avoidable) errors that entrepreneurs should watch out for. Failing to track expenses Starting…
Tax Brief: Consider these tax implications when buying or selling a business in 2023
Merger and acquisition activity dropped dramatically last year due to rising interest rates and a slowing economy. The total value of M&A transactions in North America in 2022 was down 41.4% from 2021, according to S&P Global Market Intelligence. But…
NFA Compliance: Annual Affirmation Reminder
Commodity Pools: Reminder to Reaffirm Exemptions The CFTC requires any person that claims an exemption from Commodity Pool registration under CFTC Reg 4.13(a)(1), 4.13(a)(2), 4.13(a)(3), 4.13(a)(5), an exclusion from Commodity Pool registration under Reg 4.5 or a Commodity Trading Advisor…
Tax Brief: Tax Limit Increases to Affect Businesses for 2023
An array of tax-related limits that affect businesses are indexed annually, and due to high inflation, many have increased more than usual for 2023. Here are some that may be important to you and your business. Social Security tax The…
Broker Dealer Brief: Finra’s Top Exam Priorities
It may be time for Broker Dealers to shore up their compliance programs. Finra has released its annual Examination and Risk Monitoring Program report. This gives Broker Dealers insight into activities and findings from recent activities of Finra’s Member Supervision…
Tax Brief: The Standard Business Mileage Rate is Going Up in 2023
Although the national price of gas is a bit lower than it was a year ago, the optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up in 2023. The…
Tax Brief: You May Qualify For ERC, But Be Wary of Claims That Are Too Good To Be True
The Employee Retention Credit (ERC) was a valuable tax credit that helped employers that kept workers on staff during the height of the COVID-19 pandemic. While the credit is no longer available, eligible employers that haven’t yet claimed it might…
Audit Brief: SEC Warns About Conflicts of Interest
Securities and Exchange Commission (SEC) Chair Gary Gensler spoke during a recent webcast to commemorate the 20-year anniversary of the Sarbanes-Oxley Act. Gensler recommended that the SEC take a “fresh look” at its rules on the issue of auditor conflicts…
Audit Brief: Choosing the Right Accounting Method – Tax Basis, Cash Basis, Accrual Basis
Timely, accurate financial information is essential to running a successful business. There are a number of accounting methods you can use to record and track your business’s financial performance. Here’s an overview of cash, tax and accrual basis accounting to…
Tax Brief: Key Tax Deadlines for Businesses
Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2023. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. If you have…
Tax Brief: How to Qualify for the QBI Deduction.
If you own a business, you may wonder if you’re eligible to take the qualified business income (QBI) deduction. Sometimes this is referred to as the pass-through deduction or the Section 199A deduction. The QBI deduction is: Available to owners…
Tax Brief: Expect to save more for retirement in 2023
How much can you and your employees contribute to your 401(k)s next year — or other retirement plans? In Notice 2022-55, the IRS recently announced cost-of-living adjustments that apply to the dollar limitations for pensions, as well as other qualified…
Audit Brief: Consider a surprise audit to keep accounting on its toes
One of the best ways to tackle financial statement fraud is to conduct periodic surprise audits. In fact, surprise audits were associated with at least a 50% reduction in both median loss and median duration, according to Occupational Fraud 2022:…
Tax Brief: Social Security Wage Base Increase
The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $160,200 for 2023 (up from $147,000 for 2022). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Basics…
Crypto Brief: Two Cryptocurrencies To Be Regulated as Commodities Per New Bill In the Senate
A bipartisan bill proposed in the Senate named the Digital Commodities Consumer Protection Act was introduced in late July. This legislation clarifies that bitcoin and ether, two popular cryptocurrencies, are classified as commodities, as opposed to securities which are under…
Tax Brief: Key Tax deadlines for businesses and other employers
Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to…
Tax Brief: Year-end tax planning ideas for your small business
Now that Labor Day has passed, it’s a good time to think about making moves that may help lower your small business taxes for this year and next. The standard year-end approach of deferring income and accelerating deductions to minimize…
Tax Brief: Three tax breaks for small businesses
Sometimes, bigger isn’t better: Your small- or medium-sized business may be eligible for some tax breaks that aren’t available to larger businesses. Here are some examples. QBI deduction For 2018 through 2025, the qualified business income (QBI) deduction is available…
Accounting & Audit Brief: New IRA law puts “book income” in the crosshairs
The Financial Accounting Standards Board (FASB) could have congressional lobbyists nipping at its heels over a “book minimum tax” rule in the newly enacted Inflation Reduction Act of 2022 (IRA). This would be the first corporate alternative minimum tax based…
Tax Brief: What does the Inflation Reduction Act Mean for Small Business
The Inflation Reduction Act (IRA), signed into law by President Biden on August 16, contains many provisions related to climate, energy and taxes. There has been a lot of media coverage about the law’s impact on large corporations. For example,…
Audit Brief: How much does a data breach cost?
As businesses and not-for-profit entities increasingly rely on technology, cyberthreats are becoming more sophisticated and aggressive. Auditors must factor these threats into their risk assessments. They can also help you draft cybersecurity disclosures and brainstorm ways to mitigate your risk…
Tax Brief: Why an LLC might be the best choice of entity for your business
The business entity you choose can affect your taxes, your personal liability and other issues. A limited liability company (LLC) is somewhat of a hybrid entity in that it can be structured to resemble a corporation for owner liability purposes…
Audit Brief: Evaluate Financial Performance Before Year End
How often does your company generate a full set of financial statements? It’s common for smaller businesses to issue only year-end financials, but interim reporting can be helpful, particularly in times of uncertainty. Given today’s geopolitical risks, mounting inflation and…
Audit Brief: Contingent Liabilities – To report or Not to Report
Disclosure of contingent liabilities — such as those associated with pending litigation or government investigations — is a gray area in financial reporting. It’s important to keep investors and lenders informed of risks that may affect a company’s future performance….
Tax Brief: IRS Notices Go Out To Businesses
Businesses may receive notices about information returns that don’t match IRS records The IRS has begun mailing notices to businesses, financial institutions and other payers that filed certain returns with information that doesn’t match the agency’s records. These CP2100 and…
Audit Brief: Follow Up on Auditor’s Recommendations
Maintaining the status quo in today’s volatile marketplace can be risky. To succeed, businesses need to “level up” by being proactive and adaptable. But some managers may be unsure where to start or they’re simply out of new ideas. Fortunately,…
Audit Brief: Inflation Could Affect Your Financial Statements
Business owners and investors are understandably concerned about skyrocketing inflation. Over the last year, consumer prices have increased 8.3%, according to the latest data from the U.S. Bureau of Labor Statistics. The Consumer Price Index (CPI) covers the prices of…
Audit Brief: Cash or Accrual Accounting Method, Which Is Best?
Small businesses may start off using the cash-basis method of accounting. But many eventually convert to accrual-basis reporting to conform with U.S. Generally Accepted Accounting Principles (GAAP). Which method is right for you? Cash method Under the cash method, companies…
Tax Brief: IRS Eases K2 and K3 Filing Requirements for 2021
Since the enactment of the Tax Cuts and Jobs Act in 2017, the IRS made significant changes to the Schedule K1. The changes require taxpayers to provide significantly more information to calculate their tax liability for items of international tax…
Tax Brief: Upcoming Deadlines for Businesses
Here are some of the key tax-related deadlines that apply to businesses and other employers during the second quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact…
Audit Brief: Why Reporting Subsequent Events Remains Important
Major events or transactions — such as a natural disaster, a cyberattack, a regulatory change or the loss of a large business contract — may happen after the reporting period ends but before financial statements are finalized. The decision of…
Cryptocurrency Brief: The President’s Executive Order Summary
In recent years, digital assets have grown past $3 Trillion. Additionally, nearly 16% of Americans have traded, invested in, or used cryptocurrencies. Countries are now moving toward exploring the Central Bank Digital Currencies (CBDCs). This would be a digital form…
Audit Brief: New Disclosures Required for 2022
Starting in fiscal year 2022, all entities — except nonprofit organizations in the scope of Topic 958, Not-for-Profit Entities, and employee benefit plans — must provide detailed disclosures about government assistance. Here are the details of the new rules. Defining government…
Audit Brief: New Audit Survey Reveals Risk Trend
In late January, a survey entitled “Audit Committee Practices Report: Common Threads Across Audit Committees” was published by Deloitte and the Center for Audit Quality, an affiliate of the American Institute of Certified Public Accountants. The survey analyzed 246 responses,…
Audit Brief: The 4 Levels of Audit Opinion and What They Mean
The first page of audited financial statements is the auditor’s report. This is an important part of the financials that shouldn’t be overlooked. It contains the audit opinion, which indicates whether the financial statements are fairly presented in all material…
Tax Brief: Take advantage of a valuable tax break
The credit for increasing research activities, often referred to as the research and development (R&D) credit, is a valuable tax break available to eligible businesses. Claiming the credit involves complex calculations, which we can take care of for you. But…
NFA Compliance: Exam Relief Extended
Due to the ongoing COVID-19 pandemic, NFA has allowed Members to conduct all calendar year 2020 and 2021 annual inspections of branch offices and guaranteed introducing brokers remotely. NFA has recently extended this relief through the end of 2022. Members…
Finra Exams: Broker Dealer Common Deficiencies
On June 5, 2019 the SEC adopted a new rule under the Securities Exchange Act of 1934, establishing a standard of conduct for broker dealers and natural personals who are APs of broker dealers. Regulation Best Interest enhances the broker…
Tax Brief: Looking to Minimize Tax Cost for Cash Withdrawals?
Do you want to withdraw cash from your closely held corporation at a minimum tax cost? The simplest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient since it’s taxable to you to the extent…
Audit Brief: Why the Audit Footnotes Are So Important to Your Investors
Footnotes appear at the end of a company’s audited financial statements. These disclosures provide insight into account balances, accounting practices and potential risk factors — knowledge that’s vital to making well-informed lending and investing decisions. Here are examples of key…
Tax Brief: Important Tax Aspects of Operating Your Business as a Sole Proprietor
If you’re in business for yourself as a sole proprietor, or you’re planning to start a business, you need to know about the tax aspects of your venture. Here are eight important issues to consider: 1. You report income and…
Audit Brief: Use Your Financial Statements to be Proactive
Spring is the time of year that calendar-year-end businesses issue financial statements and prepare tax returns. This year, take your financial data beyond compliance. Here’s how financial statements can be used to be proactive, not reactive, to changes in the…
CTA and CPO Compliance: Time to Reaffirm Exemptions
Any person that claims exemption from CPO registration with NFA under the following CFTC Regs: 4.13(a)(5) 4.13(a)(2) 4.13(a)(3) 4.13(a)(5) 4.5 or CTA Registration 4.14(a)(8) must reaffirm the exemption at least 60 days before calendar year end, March 1, 2022. Failure…
Tax Planning and Preparation
As we wrap up 2021, it’s important to take a closer look at your tax and financial plans. This year likely brought challenges and disruptions that significantly impacted your personal and financial situation –– a continued global pandemic, several significant…
Tax Brief: ERC Tax Credit Ends Early
The Employee Retention Credit (ERC) was a valuable tax credit that helped employers survive the COVID-19 pandemic. A new law has retroactively terminated it before it was scheduled to end. It now only applies through September 30, 2021 (rather than through…
Tax Brief: Cut your 2021 Tax Liability
Don’t let the holiday rush keep you from considering some important steps to reduce your 2021 tax liability. You still have time to execute a few strategies. Purchase assets Thinking about buying new or used equipment, machinery or office equipment…
Audit Brief: Prepare for the Year End Audit
An external audit is less stressful and less intrusive if you anticipate your auditor’s document requests. Auditors typically ask clients to provide similar documents year after year. They’ll accept copies or client-prepared schedules for certain items, such as bank reconciliations…
Audit Brief: Assessing Fraud Risks
Auditing standards require external auditors to consider potential fraud risks by watching out for conditions that provide the opportunity to commit fraud. Unfortunately, conditions during the COVID-19 pandemic may have increased your company’s fraud risks. For example, more employees may…
Audit Brief: New Accounting Rule on Government Assistance Disclosures
On November 17, the Financial Accounting Standards Board (FASB) issued a new accounting standard on disclosing certain types of government incentives that businesses receive to set up shop in a locality. The standard comes at a time when investors have been…
Tax Brief: Steps to Reduce Your Tax Liability
Don’t let the holiday rush keep you from considering some important steps to reduce your 2021 tax liability. You still have time to execute a few strategies. Purchase assets Thinking about buying new or used equipment, machinery or office equipment…
Tax Brief: Starting a Small Business? Factors to Consider When Choosing an Entity
Are you planning to launch a business or thinking about changing your business entity? If so, you need to determine which entity will work best for you — a C corporation or a pass-through entity such as a sole-proprietorship, partnership,…
Tax Preparation: Social Security Tax 2022
The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $147,000 for 2022 (up from $142,800 for 2021). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Background…
Audit Brief: Engage Auditor Now, Start Planning
Going concern disclosures today With the COVID-19 pandemic well into its second year and the start of planning for the upcoming audit season, you may have questions about how to evaluate your company’s going concern status. While some industries appear…
FINRA/SEC: Small Broker Dealers Audit Report Extension Filing
On February 12, 2021 the SEC issued an order extending the deadline for filing the annual audit report by 30 calendar days for certain Broker-Dealers. This order allows qualifying Broker-Dealers to extend their audit filing deadline from 60 days after…
Branch Office Revisions for Commodity Pools, CTAs, Introducing Brokers, and FCMs
NFAs Branch Office requirements requires each CPO, CTA, FCM, RFED, and IB Member to list branch offices. Due to the COVID-19 Pandemic, the NFA provided relief from certain branch office requirements for Members that permitted their registered APs to work…
Tax Brief: Tax Implications if you own a business and are getting a divorce
If you’re a business owner and you’re getting a divorce, tax issues can complicate matters. Your business ownership interest is one of your biggest personal assets and in many cases, your marital property will include all or part of it….
Tax Brief: Tax Depreciation Rules for Business Automobiles
If you use an automobile in your trade or business, you may wonder how depreciation tax deductions are determined. The rules are complicated, and special limitations that apply to vehicles classified as passenger autos (which include many pickups and SUVs)…
Audit Brief: What Draws the Attention of Auditors
Related-party transactions and financial connections are a normal part of operating a business. But these arrangements have gotten a bad rap because dishonest people sometimes use them to disguise poor performance or dishonest activities. So, identifying related parties and evaluating…
Tax Brief: Tax Breaks Small Businesses Should Consider
The week of September 13-17 has been declared National Small Business Week by the Small Business Administration. To commemorate the week, here are three tax breaks to consider. 1. Claim bonus depreciation or a Section 179 deduction for asset additions…
Audit Brief: Reporting Business-Related T & E Expenses
Many companies have resumed some level of business-related travel and entertainment (T&E) activities — or they plan to do so this fall. Unfortunately, these expense categories may be susceptible to incomplete recordkeeping and even fraud. So, it’s important for companies…
Audit Brief: Restating Financial Results
Restating financial results In the first half of 2021, there was a surge in financial restatements. The reason relates to guidance issued by the Securities and Exchange Commission, requiring special purpose acquisition companies (SPACs) to report warrants as liabilities. SPACs…
Audit Brief: Focus on Internal Controls to Ensure Integrity
Businesses rely on internal controls to help ensure the accuracy and integrity of their financial statements, as well as prevent fraud, waste and abuse. Given their importance, internal controls are a key area of focus for internal and external auditors….
Audit Brief: Review Financial Statements to Read the Entire Story
A complete set of financial statements for your business contains three reports. Each serves a different purpose, but ultimately helps stakeholders — including managers, employees, investors and lenders — evaluate a company’s performance. Here’s an overview of each report and…
Tax Brief: Is an LLC the right choice for your small start up fund?
Perhaps you operate your small business as a sole proprietorship and want to form a limited liability company (LLC) to protect your assets. Or maybe you are launching a new business and want to know your options for setting it…
Tax Brief: Deductibility of Corporate Expenses
Do you play a major role in a closely held corporation and sometimes spend money on corporate expenses personally? These costs may wind up being nondeductible both by an officer and the corporation unless proper steps are taken. This issue…
Tax Brief: Handling Your Start-Up Expenses on Your Tax Return
Despite the COVID-19 pandemic, government officials are seeing a large increase in the number of new businesses being launched. From June 2020 through June 2021, the U.S. Census Bureau reports that business applications are up 18.6%. The Bureau measures this…
Tax Brief: 10 Facts about a Valuable Tax Deduction
Are you eligible to take the deduction for qualified business income (QBI)? Here are 10 facts about this valuable tax break, referred to as the pass-through deduction, QBI deduction or Section 199A deduction. It’s available to owners of sole proprietorships,…
Beware of NFA Phishing Emails
Recently, the NFA had fallen victim to a phishing campaign involving fraudulent emails from members of NFA staff. These emails have a source domain name of “@nfa-futures.com” and some have included an attachment. This domain name has no connection to…
NFA Compliance Reminder: Cryptocurrency
Due to the recent volatility of the virtual currency market, the National Futures Association has issued a reminder regarding the ongoing disclosures and reporting requirements of NFA Members. Disclosure All FCMs, IBs, Commodity Pools, and Commodity Trading Advisors that engage…
Audit Brief: Accounting Estimates Present Challenges in Times of Uncertainty
In today’s unprecedented market conditions, it can be challenging to predict metrics that underlie your company’s accounting estimates. Examples of key “unknowns” include how much longer certain pandemic issues will continue, how federal stimulus spending will affect the economy over…
Audit Brief: Small Businesses Have Accounting Options
Businesses need financial information that’s accurate, relevant and timely. The Securities and Exchange Commission requires publicly traded companies to follow U.S. Generally Accepted Accounting Principles (GAAP), often considered the “gold standard” in financial reporting in the United States. But privately…
Tax Brief: Eligible Businesses can Claim the Employee Retention Tax Credit
The Employee Retention Tax Credit (ERTC) is a valuable tax break that was extended and modified by the American Rescue Plan Act (ARPA), enacted in March of 2021. Here’s a rundown of the rules. Background Back in March of 2020,…
Tax Brief: Deduction Reminders for Business Travelers
As we continue to come out of the COVID-19 pandemic, you may be traveling again for business. Under tax law, there are a number of rules for deducting the cost of your out-of-town business travel within the United States. These…
Tax Brief: Key Upcoming Deadlines for Small Businesses
2021 Q3 tax calendar: Key deadlines for businesses and other employers Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2021. Keep in mind that this list isn’t all-inclusive, so there…
Audit Brief: Strengthening Your Internal Controls
Internal controls are a system of policies and procedures organizations put in place to protect assets and improve operating efficiency. Effective internal controls are critical to accurate financial reporting. A solid system of controls can help prevent, detect and correct…
Tax Update: IRS Announces 2022 amounts for Health Savings Accounts
The IRS recently released guidance providing the 2022 inflation-adjusted amounts for Health Savings Accounts (HSAs). Fundamentals of HSAs An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of an “account beneficiary.”…
Help ensure the IRS doesn’t reclassify independent contractors as employees
Many businesses use independent contractors to help keep their costs down. If you’re among them, make sure that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be a costly error….
Audit Brief: During Tough Times, Receivables May Be a Source of Cash
Many companies are continuing to struggle financially during the COVID-19 pandemic. If cash is tight, what can your business do to shorten its cash cycle? The answer could lie in your outstanding accounts receivable. Here are five strategies to help…
FINRA Exam to Focus on SAR Filings of Broker Dealers
FINRA has provided advice for Broker Dealers to Fight Fraud. Given internet globalization and increase in technology and data, criminals and fraudsters are operating against firms and their clients at a much larger scale than ever before. Therefore, FINRA’s regulatory…
Compliance Watch: NFA Commodity Pool Filing Requirements Update
NFA recently adopted Compliance Rule 2-50 with a related Interpretive Notice, CPO Notice Filing Requirements. Effective June 30, 2021, CPO Members and the pools they operate must notify NFA of any potential financial issues that may impact a CPO’s ability…
Audit Brief: Accounting for M&A Transactions Under GAAP
If your company is planning to merge with or buy another business, your attention is probably on conducting due diligence and negotiating deal terms. But you also should address the post-closing financial reporting requirements for the transaction. If not, it…
Audit Brief: The 2021 FASB Agenda
In December 2020, Richard Jones stepped up as chairman of the Financial Accounting Standards Board (FASB). After meeting with stakeholders in early 2021, Jones identified a list of high-priority projects that he plans to tackle under his leadership. Big picture…
Audit Brief: Reporting Profits Interest Awards
During the pandemic, cash has been tight for many small businesses, which may make it hard to attract and retain skilled workers. In lieu of providing cash bonuses or annual raises, some companies may decide to give valued employees a…
Tax Brief: Small Business Retirement Savings Options
Are you thinking about setting up a retirement plan for yourself and your employees, but you’re worried about the financial commitment and administrative burdens involved in providing a traditional pension plan? Two options to consider are a “simplified employee pension”…
Individual 1040 Tax Deadline Extended
Individuals have until May 17, 2021 to meet certain deadlines that would’ve normally fallen on April 15th. These include making IRA contributions and filing certain claims for refund. Time to make contributions to IRAs and health savings accounts extended to…
Audit Brief: How to compute your company’s breakeven point
Fixed vs. variable costs Breakeven can be explained in a few different ways using information from your company’s income statement. It’s the point at which total sales are equal to total expenses. More specifically, it’s where net income is equal…
Is an S Corp the best choice of entity for your business?
Are you thinking about launching a business with some partners and wondering what type of entity to form? An S corporation may be the most suitable form of business for your new venture. Here’s an explanation of the reasons why….
Business highlights in the new American Rescue Plan Act
President Biden signed the $1.9 trillion American Rescue Plan Act (ARPA) on March 11. While the new law is best known for the provisions providing relief to individuals, there are also several tax breaks and financial benefits for businesses. Here…
Year End Audit Brief: Making Sense of Your Statement of Cash Flows
The statement of cash flows essentially tells you about cash entering and leaving a business. It’s arguably the most misunderstood and underappreciated part of a company’s annual report. After all, a business that reports positive net income on its income…
Tax Considerations for Launching a Small Business
While many businesses have been forced to close due to the COVID-19 pandemic, some entrepreneurs have started new small businesses. Many of these people start out operating as sole proprietors. Here are some tax rules and considerations involved in operating…
Annual Certified Audit Report Deadlines: SEC, Finra, NFA…
Critical dates for submitting certified annual audits: NFA: Futures Commission Merchants , if 12/31 Fiscal Year End: March 1, 2021 (60 days after FYE) Fine is $1,000.00/day if filing is late Commodity Pools, if 12/31 Fiscal Year End: March 31,…
CTA and CPO Common Deficiencies
Below are a few regulatory obligations related to common deficiencies as noted during NFA audits of Commodity Pools and Commodity Trading Advisors. Cybersecurity. Commodity Pools and Commodity Trading Advisors must adopt a written Information Systems Security Program (ISSP) to address…
Year End Audits: Are your financial statements transparent about restrictions on cash?
The basics Restricted cash is a separate category of “cash and cash equivalents” that isn’t available for general business operations or investments. There are many types of restricted cash. For example, companies sometimes set aside money for a specific business…
Tax Implications of Buying or Selling A Business
Merger and acquisition activity in many industries slowed during 2020 due to COVID-19. But analysts expect it to improve in 2021 as the country comes out of the pandemic. If you are considering buying or selling another business, it’s important…
Tax Amounts Affecting Businesses Have Increased for 2021
A number of tax-related limits that affect businesses are annually indexed for inflation, and many have increased for 2021. Some stayed the same due to low inflation. And the deduction for business meals has doubled for this year after a…
Annual Audits: Why Footnote Disclosures Are Important
The footnotes to your company’s financial statements give investors and lenders insight into account balances, accounting practices and potential risk factors — knowledge that’s vital to making well-informed business and investment decisions. Here are four important issues that you should…
FINRA to Administer Futures Industry Proficiency Exams on Behalf of NFA
Beginning January 19, 2021, FINRA will be administering the Series 3, Series 30, Series 31, Series 32, and Series 34 either at a local test center or remotely proctored online. Online testing will be delivered and remotely proctored by FINRA’s…
PPP Loans Have Reopened: Be Aware of the Tax Consequences
The Small Business Administration (SBA) announced that the Paycheck Protection Program (PPP) reopened the week of January 11. If you’re fortunate to get a PPP loan to help during the COVID-19 crisis (or you received one last year), you may wonder…
Commodity Pool and Commodity Trading Advisor Exemption Affirmation Deadline
The CFTC requires any CPO claiming one of these exemptions: Regulation 4.13(a)(1), (a)(2), (a)(3), and (a)(5), an exclusion under Reg. 4.5 or exemption from CTA registration under 4.14(a)(8) to annually affirm the notice of exemption within 60 days of calendar…
Swaps Proficiency Requirement Deadline Looms
The compliance date for NFA’s Swaps Proficiency Requirement is January 31, 2021. NFA members with APs required to satisfy NFA’s Swaps Proficiency Requirements must ensure these individuals do so by January 31, 2021. Individuals who do not satisfy the Swaps…
Audit Brief: A Risk to Consider
Assessing and mitigating key person risks Auditing standards require a year-end risk assessment. One potential source of risk may be a small business’s reliance on the owner and other critical members of its management team. If a so-called “key person”…
Potential Tax Benefits: Thoughts on converting from a C to an S corporation
The right entity choice: Should you convert from a C to an S corporation? The best choice of entity can affect your business in several ways, including the amount of your tax bill. In some cases, businesses decide to switch…
Can Your Business Benefit From the Enhanced Employee Retention Tax Credit (ERTC)?
COVID-19 has shut down many businesses, causing widespread furloughs and layoffs. Fortunately, employers that keep workers on their payrolls are eligible for a refundable Employee Retention Tax Credit (ERTC), which was extended and enhanced in the latest law. Background on…
New Law Makes Favorable PPP Loan Changes
The COVID-19 relief bill, signed into law on December 27, 2020, provides a further response from the federal government to the pandemic. It also contains numerous tax breaks for businesses. Here are some highlights of the Consolidated Appropriations Act of 2021…
NFA Members – Swap Proficiency Deadline approaches
On January 31, 2021 members with APs are required to have fulfulled the NFA’s Swaps proficiency Requirements. Individuals who do not satisfy the Swaps Proficiency Requirements by the compliance date will be unable to engage in Swaps activities until they…
Audit Brief: Put your year end financial statements to work in 2021
It’s almost time for calendar-year businesses to prepare their year-end financial statements. If used correctly, these reports can be a valuable management tool. Use them in benchmarking and forecasting to be proactive, not reactive, to market changes. 1. Benchmarking Historical…
Tax Planning 2020 – Checklist for Business Partnerships and Corporations
Here is a guide to potential moves for business partnerships and corporations. Taxpayers other than corporations may be entitled to a deduction of up to 20% of their qualified business income. For 2020, if taxable income exceeds a specified threshold…
Commodity Pool Members – NFA Updates Form PQR
NFA Compliance Rule 2-46 requires, with limited exceptions, commodity pool operator (CPO) Members to file NFA Form PQR on a quarterly basis with NFA for each pool that it operates. CFTC Regulation 4.27 imposes similar CPO reporting requirements by requiring…
Partnership Tax Returns: Calculating the Tax Basis for 2020 Tax Year
Partnerships filing Form 1065 for tax year 2020 (tax returns due in 2021) must calculate partner capital accounts using the tax-basis method. Under this method, partnerships report partner contributions, share of partnership net income or loss, withdrawals and distributions, and…
Audit Reminder: Rules regarding accounting cutoffs
What counts in 2020 vs. 2021 As year end approaches, it’s a good idea for calendar-year entities to review the guidelines for recognizing revenue and expenses. There are specific rules regarding accounting cutoffs under U.S. Generally Accepted Accounting Principles (GAAP)….
Introducing Broker Checklist – Make Sure Your Compliance House is in Order
Independent Introducing Brokers are required to submit an annual certified audit to the National Futures association. The due date depends upon the IIBs year end. For example, if their fiscal year end is December 31 audits must be submitted no…
SEC and CFTC Rule Comments and Effective Dates
SEC Activity: Fund of funds arrangements. The SEC has adopted a new rule and related amendments that update the regulatory framework for fund of funds arrangements. New Rule 12d1-4 allows a fund to acquire the shares of another fund in excess…
Withdrawing from Your Corporation at a Low Tax Cost
Owners of closely held corporations are often interested in easily withdrawing money from their businesses at the lowest possible tax cost. The simplest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient, since it’s taxable…
Tax Advantages of a Health Savings Account for Small Businesses
Health Savings Accounts for your small business Small business owners are well aware of the increasing cost of employee health care benefits. As a result, your business may be interested in providing some of these benefits through an employer-sponsored Health…
Six Major Costs of Starting a Hedge Fund
Beyond designing an investment strategy is the important task of setting up your firm infrastructure, and that includes how to budget the costs of starting your hedge fund. To outline cost estimates of what it takes to start a hedge fund, here…
Introducing Brokers, FCMs, Commodity Pools – Start your PPP Loan Forgiveness Application Now
Do you have a PPP Loan? Start your forgiveness application process as soon as possible PPP Loan is a liability on your balance sheet until it is formally forgiven The PPP forgiveness process can take as long as 5 months…
Coronavirus Regulatory Relief Updates for IBs, FCMs, RFEDs, SDs
Per Compliance Rule 2-9, NFA Members with Branch Offices and/or Guaranteed Introducing Brokers (GIB) are required to conduct annual onsite inspections of each Branch Office and GIB. However, a new NFA Interpretive Notice now allows flexibility of this requirement based…
Commodity Pool Audit Due Dates and Compliance Checklist
Non-exempt Commodity Pools must submit a certified audit on an annual basis to the National Futures Association. The audit must be completed by an independent certified public accountant. The auditor cannot be the same as the pool accountant. The audit…
Broker Dealer Audit Due Dates and Compliance
Broker Dealer Audit Due Dates and Compliance Broker Dealers must submit an annual independent certified audit to both FINRA, the SEC, and SIPC (if applicable). These annual audits must be submitted no later than 60 days after fiscal year end. For…
The Broker Dealer Exemption Report – webinar October 15
October 15 – 1:00 PM EST (virtual) Earn 1 CPE Credit Hour For Broker-Dealers and FINOPs of Broker-Dealers This CPE Workshop will provide an in-depth look at the SEC and PCAOB requirements related to the broker-dealer’s exemption report. You will…
Reminder NFA Members – New Self Exam Questionnaire Available
The National Futures Association (“NFA”) requires all its member firms, on an annual basis, to review their operations using NFA’s Self-Examination Questionnaire. The document is designed to aid members in recognizing potential problem areas and to alert them to procedures…
Payroll Tax Deferral – An Administrative Challenge
On August 8, 2020, President Trump signed an executive action in the form of a memorandum allowing employers the option to defer the withholding of Social Security payroll taxes (6.2% of wages) beginning September 1, 2020 for any employees earning…
Webinar -The Broker-Dealer Exemption Report. Understanding the requirements of the SEC and PCAOB
August 27 – 4:30PM EST (virtual) Earn 1 CPE Credit Hour For Broker-Dealers and FINOPs of Broker-Dealers This CPE Workshop will provide an in-depth look at the SEC and PCAOB requirements related to the broker-dealer’s exemption report. You will go…
Payroll Protection Program – Highlights
General Loan Forgiveness FAQs Question: Which loan forgiveness application should sole proprietors, independent contractors, or self-employed individuals with no employees complete? Answer: Sole proprietors, independent contractors, and self-employed individuals who had no employees at the time of the PPP loan…
Reminder: Compliance Date Approaches for NFA’s Swaps Proficiency Requirements
NFA Members with Associated persons may be required to satisfy NFA's Swaps proficiency Requirements if APs engage in Swaps activities no later than January 31, 2021. In order to remain in compliance and maintain membership and AP status as well...
NFA Members – Review Your Current Operations
The NFA requires member FCMs, RFEDs, IBs, CPOs, and CTAs must review their operations on an annual basis using the NFA’s Self Exam Questionnaire. As of June 2020, the NFA has updated the questionnaire to reflect recent rule amendments that…
NFA Extends Fingerprinting Requirement
Due to the ongoing CoVid-19 pandemic, the NFA had granted relief of the fingerprinting requirement for registrants, principals, and associated persons. The relief was originally scheduled to expire on July 23, 2020. However, relief from fingerprint processing has now been…
NFA Compliance – Training Reminders
As the NFA performs frequent audits of member firms, there are areas that can be ripe for deficiency findings. As a reminder, the NFA requires training in the following areas: Anti-Money Laundering (“AML”) upon hire and every 365 days thereafter…
Becoming a Commodity Pool Operator – Registration Requirements
We are often asked for budgeting and requirements for registering with the National Futures Association (NFA) as a Commodity Pool Auditor (CPO). Summarized below are a few of the requirements. You must first obtain secure access to NFA’s Online Registration…
Unique Accounting Aspects of the PPP Loan
Many small businesses including broker dealers, introducing brokers, registered investment advisors and others in the alternative investment space have received loans under the Paycheck Protection Program (“PPP”). The only requirement for most firms is to have less than five hundred…
Compliance Checkup – Annual Introducing Broker Requirements
Summer is a good time to review your annual NFA requirements to make sure you remain in compliance with the National Futures Association. Here are just a few reminders: Cybersecurity – Each member must formalize and implement a written Information…
Tax Deadline Extensions and Reminders
Due to the COVID-19 pandemic, the federal government has moved the individual tax filing due date from April 15, 2020 to July 15, 2020. Additionally, the due date for Federal income tax payments (including payments of tax on self-employment income)…
Introducing Broker Financial Audits – New Deadline
Regulatory Relief for Introducing Brokers Per CFTC Regulation 1.10, Independent Introducing Broker Members must file a certified financial report within 90 calendar days after the close of their fiscal year end. Additionally, Independent Introducing Brokers must file a semi-annual financial…
NFA Compliance Reminders & Annual Requirements
Exemption Affirmation All exempt CPOs and CTAs have until March 2, 2020 to complete the affirmation process. However, because it may be difficult for NFA members to conclusively determine whether a previously exempt CPO or CTA continues to be eligible…
CTA Performance Reporting and Disclosures – Amendments become effective February 1, 2020
Effective Date for Amendments to NFA Requirements Related to CTA Performance Reporting and Disclosures NFA Compliance Rule 2-34 and the related Interpretive Notice entitled CTA Performance Reporting and Disclosures establish performance reporting and disclosure requirements for commodity trading advisor (CTA) Members. NFA recently…
SEC Planning Broker Dealer Compliance Outreach Seminar – Chicago
The SEC and Finra are hosting their 2019 National Compliance Outreach Program for Broker Dealers on June 27th in Chicago. The program will be held at the Federal Reserve Bank of Chicago. Additionally, the compliance program will also be webcast….
Anti-Money Laundering Deficient Jurisdictions
The NFA has put out an updated list of jurisdictions that are deficient in anti-money laundering and anti-terrorism rules. There are some of the usual suspects (Iran) and a few new ones (Cambodia). Financial institutions should be aware of changes…
Commodity Futures Trading Commissions Divisions of Swap Dealer & Intermediary Oversight to Grant NoAction Relief on Heels of Brexit
In anticipation of the withdrawal of the UK and Northern Ireland from the European Union, the CFTC’s DSIO, announced they will grant no-action relief to provide greater certainty to the global marketplace due to the heightened market uncertainty. To bring…
NFA Compliance: Commodity Pool Operator Deadline
In January of this year, the NFA adopted an interpretive Notice regarding Internal Control Systems for Commodity Pool Operators (Rule 2-9) Commodity Pool Operators (CPO) Members who have the ability to control customer funds must implement an internal controls framework…
Introducing Broker Annual Requirements & Deadlines
Below is a summary of just some of the important requirements for Introducing Brokers. Note this does not reflect all IB responsibilities: Cybersecurity (ISSP). On an annual basis, the information systems security program must be reviewed and updated. NFA/CFTC updates…
FINRA warns Broker Dealers of an Email Phishing Scam
FINRA has recently warned Broker Dealers to be on alert for an email targeting their compliance personnel. The email appears to be coming from a credit union notifying the firm about potential money laundering involving one of their clients. There…
FINRA 2019 Risk Monitoring & Priorities Letter
Every year, FINRA publishes its Annual Risk Monitoring and Exam Priorities to highlight issues to its regulatory programs. This year’s letter takes a new approach by focusing on those topics that will be materially new areas of emphasis for risk…
CFTC Announces Examination Priorities
For the first time, the Division of Market Oversight (DMO) for the CFTC has published its exam priorities for 2019. The exams conducted by the Compliance Branch will target specific elements of a designated contract markets’s (DCM’s) self-regulatory program with…
Broker Dealers: Update Compliance Program
In order to improve and update Broker Dealer compliance programs, we have put together a brief summary of new and amended FINRA regulations, enforcement actions, and overall regulatory developments that occurred in 2018. 2018 Enforcement Actions FINRA determined that Wedbush…
Cyberthieves Shouldn’t Pull on SECs Cape
he SEC took action against nine defendants in the regulator’s 2016 Edgar system hacking. “The SEC’s complaint alleges that after hacking the newswire services, Ukrainian hacker Oleksandr Leremenko turned his attention to EDGAR and, using deceptive hacking techniques, gained access…
CFTC Wants the Info on Crypto-Market
CFTC Wants Info on Crypto-Market In December, the CFTC put out a request of information “asking for public feedback on a range of questions related to the underlying technology, opportunities, risks, mechanics, use cases, and markets, related to Ether and…
Commodity Pool Operators Internal Controls System: NFA Compliance Rule 2-9
Effective April 1, 2019 all Commodity Pool Operators having the ability to control customer funds must adopt and implement an internal controls framework. The internal controls must be designed to protect customer funds, provide reasonable assurance that the books and…
CPO and CTA Affirmation Deadline Approaching
If you are a CTA and CPO and you currently claim an exemption under 4.13(a)(2), (a)(3), (a)(5), or exclusion from CPO registration under CFTC Reg 4.5 or CTA registration under 4.14(a)(8), you must reaffirm this exemption on or before March…
SEC and FINRA: RIAs and Broker Dealer Updates
By Any Other Name: Those registered investment advisors who thought the Fiduciary Rule was dead should think again. The Department of Labor’s so-called Fiduciary Rule having died earlier this year is making a comeback in a different version. But more…
NFA: Virtual Currency Activities Disclosure for IIBs, FCMs, CPOs, and CTAs
Virtual Currency Rules: In October, the NFA adopted an Interpretive Notice entitled Disclosure Requirements for NFA Members Engaging in Virtual Currency Activities. The Interpretive Notice establishes disclosure requirements for FCM, IBs, CPOs and CTAs that engage in activities related to virtual currencies…
CFTC Compliance Wrap Up 2018
Giving Chief Compliance Officers a Break: In August, the CFTC unanimously approved final amendments simplifying its regulations of chief compliance offer (CCO) duties and annual compliance reporting requirements for FCMs, swap dealers, and major swap participants. The amendments clarify a…
Michael Coglianese: Alternative Investment Accountants at Traders Expo Chicago
At Traders Expo Chicago, Michael Coglianese speaks on what traders need to know about accounting, compliance and taxes. They trade equities, grains, futures, financials, cryptos. Among those he helps: crypto hedge fund managers. When the CME expanded into crypto, that…
National Introducing Brokers Association – Chicago Conference 2018
On September 13, 2018, NIBA will be hosting their Chicago Conference at the CME Group headquarters, 20 S. Wacker Drive. Growing your business while remaining in compliance with regulators remains a challenge. We strongly urge attendance as it is an…
Hedge Funds: SEC Amends and Updates Disclosure Requirements Easing Compliance Burden
In order to remove outdated, overlapping, and duplicative disclosure requirements, the SEC has adopted amendments to reduce the compliance burdens for companies without altering the mix of information available to investors. These amendments apply primarily to public reporting companies as…
Commodity Futures Markets: Updated Research Report on Sharp Price Movements
The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) issued a report today that analyzed sharp, intraday price movements in the commodity futures markets. DMO staff in the Market Intelligence Branch (MIB) analyzed 2.2 billion transactions from 16…
New Disclosure Required for Introducing Brokers and FCMs
Due to the significant growth of the virtual currency market, the NFA has proposed an interpretive notice to the CFTC invoking the “ten-day” provision and will make it effective 10 days after receipt of submission. The notice was put forth…
Introducing Brokers and FCMs: Review AML Programs to Address Virtual Currency
The Office of Foreign Assets Control (OFAC), a division of the U.S. Treasury Department has published 5 Frequently Asked Questions addressing compliance obligations for virutal currency transactions. These FAQs define commonly used terms associated with virtual currency such as “digital…
Introducing Brokers and FCMs: Increased Customer Due Diligence Now Required
As of May 11, 2018 Introducing Brokers and Futures Commission Merchants will be required to have Customer Due Diligence procedures in place. These procedures must include obtaining information for all owners of legal entities opening accounts. These changes and updates…
AML Program Updates for FCMs, Introducing Brokers, & Broker Dealers
Effective May 11, 2018, enhanced Customer Due Diligence (CDD) requirements will be amended for certain financial institutions. This new CDD Rule amends current AML programs and adds a pillar to the current requirements within the AML Program. These updates apply to…
DOL Fiduciary Rule Struck Down by 5th Circuit Court
Causing more confusion for brokers, the 5th Circuit court struck down the DOL Fiduciary rule. Meanwhile, the SEC moves toward providing more clarification. In a 2-1 decision to vacate the rule, it looks like implementation DOL Fiduciary rule will likely never…
Annual Compliance Reminders
Commodity Trading Advisors 2.14.2018–Form PR (for December 31 year end) 3.1.2018–Affirm CTA exemptions (4.14(a)(8) Anniversary of registration–Self-Examination Checklist Commodity Pool Operators 3.1.2018–Affirm CPO exemptions (4.5 and 4.13) 3.1.2018–Registered Large CPO Form CPO-PQR (for December 31 quarter end) 4.2.2018–Registered Mid-Size and Small…
NFA Adds Cryptocurrency Questions for CPO and Additional Reporting for CPOs and CTAs
NFA has added two yes/no questions on virtual currency activities to the annual pool financial statement cover page. The cover page can be accessed through NFA’s EasyFile system. These changes are effective for pool financial statements as of October 31,…
SEC Issues Staff Letter to ICI and SIFMA Regarding Satisfying Investment Company Act of 1940
At the end of January, Dalia Blass, the Director of Investment Management at the SEC issues a staff letter discussing concerns, asking questions, and seeking input regarding the cryptocurrency asset class and how best it should satisfy the requirements of…
CFTC Commissioner suggests self regulation to Crytocurrency Industry
Brian Quintenz, a commissioner with the CFTC, says the best approach to policing the new crytocurrency companies is for the industry to consider adopting self-regulatory standards and industry-wide best practices while government agencies mull over how best to regulate and police…
5 Things to Keep In Mind When Starting a Cryptocurrency Fund
The cryptocurrency asset class is here to stay and growing at warp speed. The stories are real. Some cryptocurrency traders have turned $100,000 into $1,000,000 in less than a year. Now those traders are creating cryptocurrency funds so they can…
Mike Coglianese to Speak on The Global Macro Edge Series Panel at The TradersEXPO New York
John Netto, author of The Global Macro Edge invited contributors to his book to a special educational event at this years TradersEXPO New York. The focus of this event takes a look at how to structure risk more efficiently through…
CFTC Exemption Deadline: Reminder ICYMI
A reminder that the CFTC requires any person that claims an exemption from CPO registration under CFTC Regulation 4.13, an exclusion from CPO registration under CFTC Regulation 4.5 or an exemption from CTA registration under 4.14, to annually affirm the…
CFTC Launches Cryptocurrency Website
Showing some normalization of Bitcoin, the CFTC has launched a specific website to keep up to date on regulatory news and changes in the cryptocurrency world. For more information, go to http://www.cftc.gov/bitcoin/index.htm For information on the CME Group’s Bitcoin futures…
Introducing Brokers and FCMs Get A Break
The CFTC announced it has issued no-action relief to registered FCMs and IBs to exclude deferred tax liabilities that are directly related to the capitalized costs of certain non-allowable assets when computing their adjusted net capital under Regulation 1.17. The…
Mifid II Blues and CTA Registration Requirements
On Dec. 11, the CFTC staff issued this statement on CTA registration requirements and MiFID II: The Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) recently issued interpretative guidance providing that a futures commission merchant (FCM), swap…
The Bitcoin Ocean: Tread Carefully
The regulators have made known that investors and traders should tread carefully when trading bitcoin or any other cryptocurrency. On Dec. 11, SEC Chairman Jay Clayton gave his two bitcoins and provided Main Street investors a guide and warning to…
DOL Delays Fiduciary Rule…again
The DOL has delayed the effective date of three major compliance regulations by 18 months. However, the rule is still in existence. The arm in charge of retirement plans, the Employee Benefits Security Administration (EBSA) posted a preliminary version of…
Still Early in Bitcoin Infrastructure For Traders
“[Bitcoin’s] worse than tulip bulbs. It won’t end well. Someone is going to get killed.” Chase CEO Jamie Dimon “Bitcoin is an index for laundering.” Blackrock CEO Larry Fink Despite its (albeit heavy weight) detractors, bitcoin and its cryptocurrency cousins…
Independent Introducing Broker and FCM Annual AML Audit Reminder
On an annual basis, Independent Introducing Brokers and Futures Commission Merchants are required to have an independent review of their AML policies and procedures. This is required per NFA from registration and beyond. Falling outside of the 12 month requirement…
Registered Investment Advisers–SEC Custody Exam Requirements
Registered Investment Advisers who have custody of their clients’ funds or securities must safeguard those funds as required by the SEC’s “custody rule.” The custody rule is designed to provide additional safeguards for investors against the possibility of theft or…
Futures Commission Merchants – Audit Due Date and Compliance Checklist
Futures Commission Merchants are required to submit an annual certified audit performed by an independent accountant to the NFA. The annual audit is due 60 days after the FCMs fiscal year end. For example, if year end is December 31,…
Commodity Trading Advisor Compliance Checklist
A Commodity Trading Advisor is required to meet all compliance regulations on an annual basis along with quarterly reporting. Below is an example of a compliance checklist that should be reviewed and documented on an annual basis: _____ Check on…
Broker Dealer Certified Audit Due Date and Compliance Checklist
Broker Dealers must submit an annual independent certified audit to both FINRA, the SEC, and SIPC (if applicable). These annual audits must be submitted no later than 60 days after fiscal year end. For example if year end is December 31,…
Commodity Pool and Hedge Fund Audit Due Date and Compliance Check Up
Non-exempt Commodity Pools must submit a certified audit on an annual basis to the National Futures Association. The audit must be completed by an independent certified public accountant. The auditor cannot be the same as the pool accountant. The audit…
Independent Introducing Broker – Compliance Checklist and Certified Audit Due Dates
Independent Introducing Brokers are required to submit an annual certified audit to the National Futures association. The due date depends upon the IIBs year end. For example, if their fiscal year end is December 31 audits must be submitted no…
NFA’s Executive Committee Recommends Increase to NFA’s Assessment Fee
On October 19, NFA’s Executive Committee voted to recommend to NFA’s Board of Directors (Board) an increase in NFA’s assessment fee from $0.01 per side to $0.02 per side for futures and options contracts. The decision to recommend an assessment…
CFTC Holds Liquidity Stress Tests on Various Exchanges
The CFTC held liquidity stress tests on CME Clearing, ICE Clear U.S., and LCH, Ltd. clearinghouses and here are its findings using positions and collateral as of Aug. 16, 2017: All of the clearinghouses demonstrated the ability to generate sufficient…
DOL Fiduciary Rule: Will it happen?
The Department of Labor’s Fiduciary Rule has met resistance throughout its development, but the head winds are strongest under the Trump administration. Another delay of its implementation may come soon, moving implementation to 2019. http://www.thinkadvisor.com/2017/09/15/dol-fiduciary-rule-delay-all-but-certain-as-commen The Economic Policy Institute projects…
NFA Reminder: Updates to the Individual Application Process Now in ORS
On Monday, Sept. 18, 2017, the NFA launched an updated individual application process in its Online Registration System (ORS). The updated individual application process includes additional help text, streamlines navigation, modernizes design, and incorporates a new electronic disclosure matter processing system….
NIBA Chicago 2017 – New topics for discussion
NIBA will be hosting their annual pinnacle event in Chicago on September 14, 2017 at the CME building, 20 S. Wacker Drive. This year’s conference will include an interesting new session on cryptocurrency trading as well as legal, compliance, and…
CTA Expo Chicago – Join Mike Coglianese for a Panel Discussion at the Pre-Conference
The CTA Expo Emerging Manager Forum will be held in Chicago on September 14, 2017 at the UBS Center, One North Wacker Dr.. An additional Pre-conference will be held at the same location the day before, on September 13, 2017….
Risk Metrics for FCMs That Do Swaps
NFA Financial Requirements Section 17 requires swap dealers (SD) and major swap participants (MSP) to file the financial, operational, risk management and other information required by NFA in the form and manner prescribed by NFA. Risk monitoring will be a major…
DOL Fiduciary Rule In Place…For Now
The Department of Labor’s new regime has met some resistance on changing its own Fiduciary Rule that went live on June 9, the delayed deadline from April. Most recently Labor Secretary Acosta noted the department has requested information from advisors…
Compliance Reminders
Anti Money Laundering Annual Review Every Independent Introducing Broker and Futures Commission Merchant must have an Independent AML Review every 12 months. This must be done by either an outside compliance specialist or an internal source that is completely removed…
Did you File a Tax Return Extension? Note Your New Deadlines
If you or your tax professional has filed an extension, please note the following deadlines for filing 2016 tax returns: Partnership Returns Form 1065: Original Due Date: March 15 Extension Due Date: September 15 S Corp (calendar year) Form 1120S Original…
President issues executive order regarding review of regulations
On April 21, 2017 the President signed an executive order requiring the Secretary of the Treasury to review all regulations that were issued after December 31, 2015. The Treasury secretary is looking to identify any regulations that may have created…
FinCEN issues an advisory on AML/CFT deficiencies
On April 5, 2017, the Financial Crimes Enforcement Network (FinCEN) issued an advisory announcing that the Financial Action Task Force (FATF) had updated its list of jurisdictions with strategic Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) deficiencies. NFA…
Investment Advisor Custodial Agreements could mean “surprise exams” by SEC
When they say the devil is in the details, take it to heart; especially investment advisors who have separate custodial agreements with a client and a qualified custodian. Because custodian agreements come in different shapes and sizes, the contract could…
Amendment to NFA Compliance Rule 2-36: requirements for forex transactions
The CFTC recently approved NFA’s amendment to NFA Compliance Rule 2-36, which requires forex dealer members to provide customers, upon request, with certain transaction execution data. This amendment will become effective on March 31, 2017. The amendment provides customers with…
Department of Labor’s Fiduciary Rule Affects Financial Advisors, Fees, and Mutual Funds
The Department of Labor’s fiduciary rule that affects financial advisors, fees, and mutual funds is to go into effect in April. however with the new administration’s stance on repealing it, Rep Joe Wilson (R-SC) submitted in early January a bill…
CPO and CTA Reporting Requirements Update: Amendment to NFA Compliance Rule 2-46
Commodity Pool Operators and Commodity Trading Advisors will now be required to report two new ratios on their PQR and PR as of the quarter ending June 30, 2017. These new reporting requirements evolved from the NFA’s review of possible…
Remember to re-up your CTA and CPO Registration Exemption!
Any CTA and/or CPO claiming an exemption from registration must reaffirm the exemption annually via the NFA’s website under Electronic Filings. These registration exemptions MUST be reaffirmed by March 1, 2017. Failure to affirm an active exemption will result in it…
CFTC Approves Final Rule Amendments For CPO Annual Audits
The CFTC unanimously approved certain amendments to its Part 4 regulations that relates to Commodity Pool Operators and their reporting obligation. Previously, the CFTC had granted relief by way of no-action letters and other exemptions. The amendments affect CPO reporting in…
NFA Updates Self-Exam Questionnaire for IBs and CPOs
Every year, the NFA requires members to update their operations information to satisfy their continuing supervisory responsibilities under NFA Compliance Rules 2-9, 2-36, and 2-39. Due to new relevant rules, the questionnaire has been amended to include a Forex Electronic…
Proposed Amendment to NFA Compliance Rule 2-46
On Sept. 6, 2016 the NFA submitted to the CFTC a proposed amendment with regard to reporting financial information on NFA forms PQR and PR. This amendment will allow the NFA to collect financial information on the financial condition of…
SEC Rule – Set to Expire
As of July 31, 2016, Broker Dealers, including those dually registered as Futures Commission Merchants, will be prohibited from offering or entering into a transaction with a person who is not an eligible contract participant (retail forex transaction). A retail…
NFA Enforces Deadlines for CTA and CPO Late Filings
NFA Compliance Rule 2–46 requires CPOs and CTAs to file NFA Form PQR and NFA Form PR, respectively, with NFA on a quarterly basis. The information within these quarterly forms helps NFA determine it’s examination schedule in search of firms…
2016 NIBA/DePaul Event – July 14, 2016
The National Introducing Broker Association is hosting an informative and instructive afternoon briefing July 14th, 2016 at DePaul University, 8th Floor Conference Center, 1 E. Jackson Blvd, Chicago, IL 60604. Topics will include sessions on cybersecurity and managed futures. There…
Four Mistakes New Fund Managers Make That Can Impact a Bottom Line
Getting a hedge fund, CTA or CPO set up correctly from the start can save money and severe consequences down the road. Here are four general mistakes made by new fund managers that typically do not make their presence known…
The Value of Strategic Partnerships – Maximize Your Rate of Returns
Whether you are running a hedge fund, Introducing Broker, CTA, or CPO you are required to spend most of your time managing your investors, investments, and returns. In our regulated industry, you also need to hire an attorney, an auditor,…
Why Hackers Hack Websites: Securing Your Website for Compliance and to Protect Your Business
With the upcoming cybersecurity requirements by the NFA and nearly every regulatory body overseeing financial service industry participants, it’s important to not only comply with cybersecurity regulations but to use this as an opportunity protect your business’ website. Many businesses…
NFA Members – New ISSP Program Effective March 1, 2016
Effective March 1, 2016 NFA’s Interpretive Notice to NFA Compliance Rules 2-9, 2-36, and 2-49 entitled Information Systems Security Programs will require Member firms to adopt and enforce written policies and procedures to secure customer data and access to their…
Commodity Futures Trading Commission Proposes Regulation AT
The CFTC has unanimously approved a proposed Rule on Automated Trading. Regulation AT takes a multi-level approach to represent a series of risk controls, transparency measures, and other safeguards to enhance the U.S. regulatory industry for automated trading. The rule…
NFA Financial Requirements – Customer Liability Requirements
Under CFTC Regulation 5.8, FDMs that hold assets used to cover retail forex customer liabilities are now required to instruct the depositories holding these funds to report the balances in their accounts on a daily basis to NFA or a…
NFA Audit Examinations – Reminders
Based on feedback we are hearing from our clients who have undergone recent NFA Surprise Examinations, there are a few reminders and good practices to develop as NFA Members. If you maintain written operational procedures, you must not only follow…
CFTC Asks Congress for Additional Funds
According to the head of the CFTC, Timothy Massad, they simply cannot afford routine inspections, including inspections of exchanges and other companies it regulates. Massad told a Senate committee, “We don’t even get to many of the clearinghouses and exchanges…
Introducing Broker Compliance Reminders
June 30 1FRs Due to NFA on July 24, 2015. This semi-annual unaudited financial statements must be submitted 17 business days after period end. Use NFA Electronic Easy File System for this submission. Complete your Annual Registration Update and Self-Examination…
National Introducing Broker Association Conference – Chicago 2015
The National Introducing Broker Association was established in 1991 and is one of the foremost, nationally recognized organizations representing professions in the futures and options industry. Members include Introducing Brokers, Commodity Trading Advisors, Futures and Options Exchanges, as well as…
Annual Certified Audit Reminders – Introducing Brokers and SWAP IBs, FCMs, CPOs, and Broker Dealers
Now is an excellent time to contact your auditor to prepare for year end. Contacting and engaging now allows auditors to review financials and perform interim work. It is an opportunity to With isn’t, milder may diet pills to be…
Hedge Fund Advertising Ban – CFTC Eases Restrictions
Commodity regulators in the U.S. have made it easier for hedge funds and other firms to raise capital by publicly advertising stakes in their funds. As of Tuesday, September 9th, the CFTC’s restrictions became more in line with similar rules…
Advisory Review for Introducing Brokers and Futures Commissions Merchants
In August, the Financial Crimes Enforcement Network (FinCEN) issued an Advisory announcing that the Financial Action Task Force (FATF) had updated its list of jurisdictions with strategic anti-money laundering and counter-terrorist financing (AML/CFT) deficiencies. We recommend that all NFA…
Futures and Hedge Fund Industry Networking Event – September 22, 2014
On September 22, 2014 Michael Coglianese CPA, P.C., Henderson Law, and Midland IRA will be hosting a Networking Event specific to the Futures and Hedge Fund Indusstry. This is an excellent opportunity to network with CTAs, CPOs, Hedge Funds, Introducing…
Introducing Brokers – NIBA Conference Chicago 2014
The National Introducing Broker Association will be hosting it’s annual member conference in Chicago on Monday, September 22nd. The morning session will be held at the Chicago Board of Trade Building, 141 W. Jackson. Michael Coglianese was invited to be…
The International Traders Expo Las Vegas
The International Traders Expo will be held November 19-20, 2014 at Caesars Palace, Las Vegas. Attended by the Top Trading Pros, this conference includes learning specific strategies, networking with other traders, gaining a broader perspective of the markets, and finding…
NIBA Conference Chicago
NIBA Conference in Chicago on September 22, 2014. For more information and to register for the event click here.
CTA Expo Chicago
CTA Expo in Chicago, at fish cycline forteis it safe to buy viagra?legitimate mexican pharmacieswhere can i buy synthroidpolarmeds pharmacylevitra without prescription in usa www.themanestreet.com the UBS tower, on September 23, 2014. To register for this event click here.
Education Event for Investors and Hedge Fund Managers
Exploring partnerships between Hedge Fund Managers and Investors. July 9th, 2014 in New York, NY. For more information and to RSVP click here.
Delivering Alpha presented by CNBC
4th annual Delivering Alpha Conference in New York City, July 16th, 2014. Hundreds of hedge fund managers and investors will be participating. For more information and the agenda click here. To register click here.
Traders Exchange Event – Save the Date
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CPO and Hedge Fund Reminders – Financial Statements Must Comply With GAAP (Generally Accepted Accounting Principles)
NFA has recently been identifying and advising CPOs with regard to making sure their financial statements are in compliance with GAAP (Generally Accepted Accounting Principles). As a reminder to all CPOs and Hedge Funds, organizational costs must be expensed as incurred…
Introducing Broker Compliance Reminders
It is imperative for all Introducing Brokers to remain in compliance with current NFA regulations or face hefty fines. We recommend the following be reviewed on a continuous or annual basis: Anti-Money Laundering Review must be conducted independently every 12…
Public Information Deadline for FCMs
As of July 12, 2014 all FCMs must make financial information available on their websites. The information must include: The daily Statement of Segregation Requirements and Funds in Segregation for Customers Trading on U.S. Exchanges for the most current 12…
NFA Proposes Lower FCM Assessment Fees
NFA has recently submitted a proposed amendment of NFA Bylaw 1301 to the CFTC. The proposed amendment includes decreases in assessments for FCM Members. In summary, the assessments are equal to: $.02 (previously $.04) for each commodity futures contract traded…
National Introducing Broker Association Meeting – Chicago – July
Together with DePaul University, NIBA will be hosting an afternoon meeting on Tuesday, July 8, 2014 at the Arditti Center, DePaul University 1 East Jackson Blvd, Chicago, Illinois. Topics of discussion will include CFTC Reg 1.22 and how it affects…
New Process for Registration No-Action Relief for CPOs
Due to the rescission of Regulation 4.13(a)(4) which had provided exemption from registration to certain types of CPOs, the CFTCs Division of Swap Dealer and Intermediary Oversight has fielded an increase in requests for no-action relief for failure to register…
SEC Targeting Deficiencies in RIA Compliance Programs in 2014
With the passage of the Dodd Frank Act, the SEC has made clear the intent to focus its examinations and disciplinary efforts on the investment adviser community. The SEC has expanded its reach to previously exempt RIAs. Six cases…
Introducing Brokers, FCMs, Swap Firms affected by CFTC Reg. 1.73
CFTC Regulation 1.73 affects IBs and FCMs that execute orders for customers. Therefore, IBs meeting the qualifying requirements who execute give-up orders must adopt risk management procedures. This new regulation also applies to bunched orders. This is one of the…
“Red Flag” Rules apply to FCMs, CTAs, CPOs, BDs, and RIAs
The SEC and CFTC have jointly adopted and must individually enforce identity theft prevention rules as a result of the Dodd-Frank Act. The SEC and CFTC have adopted a joint rule requiring “financial institutions” and “creditors” that carry “covered accounts”…
CFTC Adopts Harmonizing Rule for CPOs of Registered Investment Companies
The CFTC recently adopted final rules concerning certain compliance obligations for CPOs of RICs under the Investment Company Act of 1940 and applicable amendments to all registered CPOs and CTAs. In order to harmonize CFTC disclosure requirements with existing SEC…
The Traders Exchange Networking Event September 18, 2013 Chicago
Save the Date for one of the best networking opportunities in the Futures and Hedge Fund community. The Traders Exchange Event will be held in Chicago on September 18, 2013 at 6:30 p.m. Come out and enjoy complimentary cocktails and…
CPO/CTA Yearly Exemption Affirmation
December 4, 2012 NFA has issued a notice to persons that are relying on exemptions or exclusions from registration as a CPO or CTA. The notice explains that certain exemptions and lhc.org ceftin online no prescriptionviagra couponshttp://www.news-banner.com/hluqi/get-lisinoprilhttp://www.news-banner.com/hluqi/best-buy-for-viagra-yelpampicillin drug exclusions must…
Free Compliance Workshop
Mike Coglianese to Host Compliance Workshop Michael Coglianese CPA, P.C. will be hosting a complimentary Compliance Workshop at the Emerging Managers Forum hosted by the CTA Expo on Thursday, December 13, 2012 at the Eden Roc Renaissance Miami Beach. Mike…