The Securities and Exchange Commission (SEC) has proposed certain rules for regulators to catch brokerage firms that are misusing customer assets, The Wall Street Journal reports. The proposals will require more-stringent audits of the nearly 300 brokerage firms that hold customer cash and securities.
All 5,000 registered brokerages will be required to report whether they hold customer cash and securities and where they are holding these assets. The proposals, which follow the rules that the SEC adopted in late 2009 to strengthen protections for customers whose money is held by investment advisers, are subject to a 60 day comment period.
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