On November 12, 2024, Joe Puglisi, Managing Director at Integrated Solutions, participated in the NYSSCPA (New York State Society of CPAs) Broker Dealer Technical Session as part of a distinguished panel of industry experts. The session, which focused on the latest challenges and developments in the brokerage sector, brought together auditors, Financial Operations Principals (FINOPS), and other professionals to discuss key issues facing broker dealers today.

Key Topics Discussed:

• Accounting and Auditing Matters for Broker Dealers: The panel covered important updates on accounting and auditing issues affecting broker dealers, including the challenges firms are encountering in meeting the evolving regulatory standards.


• Compliance Concerns Under Regulatory Scrutiny: The group deled into recent compliance-related matters that have garnered increased attention from regulators, highlighting the importance of staying ahead of regulatory changes.


• New Accounting Pronouncements: The discussion also addressed recent accounting pronouncements and its impact on financial and regulatory reporting. This included the segment reporting under ASU 2023-07.


• Audit Challenges Due to Staffing Shortages: Staffing shortages were a major topic of discussion. The panel explored the steps accounting firms are taking to address these challenges, as well as the impact of staffing shortages on audit timelines and overall efficiency.


• Impact of the 30-Day Filing Extension: The recent 30-day filing extension granted to certain broker dealers was another key topic. The panel discussed whether the extension has helped ease the audit process and its condensed deadline.


• CAT Fees: The group also discussed the new CAT (Consolidated Audit Trail) fees imposed under the National Market System Plan. The session explored how these fees would be treated under ASC 606 in terms of revenue recognition and how they would be treated for net capital purposes, including allowable vs. non-allowable assets and any right of offset.