Alternative Investment Industry Technical Update: SEC, CFTC, AICPA, and CRS

We are pleased to share this Technical Update on recent changes impacting the alternative investment industry. This month you will find a brief summary of the following:

SEC:

  • Adopts JOBS Act Amendments to Help Entrepreneurs and Investors
    • Announced that it has adopted amendments to increase the amount of money companies can raise through crowdfunding to adjust for inflation.  It also approved amendments that adjust for inflation a threshold used to determine eligibility for benefits offered to “emerging growth companies” (EGCs) under the Jumpstart Our Business Startups (JOBS) Act.
    • The SEC is required to make inflation adjustments to certain JOBS Act rules at least once every five years after it was enacted on April 5, 2012.
    • Click here to read this press release.

CFTC:

  • Swap Dealers in Europe Issued No-Action Relief
    • Issued an extension of the time-limited no-action relief. The relief extended states that Division of Swap Dealer and Intermediary Oversight (DSIO) will not recommend an enforcement action against a swap dealer (SD) that is subject to, and in compliance with, the margin requirements for non-centrally cleared OTC derivatives in the European Union for failure to comply with the final margin rule.
    • Click here to read this press release.

AICPA:

  • Unveils Cybersecurity Risk Management Reporting Framework
    • The AICPA has introduced a market-driven, flexible and voluntary cybersecurity risk management reporting framework.
    • The new framework will enable all organizations in industries worldwide to take a proactive and agile approach to cybersecurity risk management and to communicate on those activities with stakeholders.
    • The AICPA also released two resources for reporting under the new framework — description and control criteria.
    • Click here to read this press release.
  • Issues new Technical Practice Aids on Internal Controls
    • The AICPA issued five Q&As related to internal controls:
      • “Obtaining an Understanding of Business Processes Relevant to Financial Reporting and Communication.”
      • “Obtaining an Understanding of Internal Control Relevant to the Audit.”
      • “Obtaining an Understanding of the Controls Relevant to the Audit.”
      • “Control Activities That Are Always Relevant to the Audit.”
      • “Control Activities That May Be Relevant to the Audit.”
    • Click here to read the recently issued technical questions and answers.
  • AICPA, NASBA and Prometric Announce Successful Launch of Next Version of CPA Examination
    • The next generation exam, which began testing on April 1, has added additional assessment of higher-order cognitive skills that test a candidate’s critical thinking, problem solving and analytical ability. The exam also makes greater use of task-based simulations as a means of assessing these higher-order skills. Recent research confirms that CPAs are now performing tasks that rely upon these skills earlier in their careers.
    • Total CPA Exam testing time increased from 14 to 16 hours – four sections of four hours each.
    • Click here to read this press release.

CRS:

  • Reporting for Common Reporting Standards (CRS) early adopter countries is fast approaching.
    • The deadlines for financial entities located in the Cayman Islands or the British Virgin Islands are as follows:
      • Registration on the CRS portal is required by June 30, 2017 (previously April 30).
      • Reporting on the CRS portal is required by July 31, 2017 (previously May 31).
    • For questions on how Arthur Bell can help, please read a brief summary here.

We welcome your suggestions for future topics that you would like to see included in this Technical Update. Also, for further information regarding these updates and how you may be affected by these changes, please contact your Arthur Bell representative at 855-787-0001 or via email at contactus@arthurbellcpas.com.

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