http://www.knowledgemosaic.com/gateway/Rules/PR.34-64676.061511.pdfOn June 15th, the SEC published for comment proposed amendments to the broker-dealer financial reporting rule in an effort to strengthen the audits of broker-dealers and the SEC's oversight of the way that broker-dealers handle their customers' securities and cash. The proposed amendments would mandate an audit of the controls that a broker-dealer has put in place and require broker-dealers that maintain custody of customer assets or self-clear transactions to allow SEC staff and the relevant designated examining authority to review work papers of the public accounting firm that audits the broker-dealer and discuss any findings with the accounting firm. The proposed amendments also would require all broker-dealers to quarterly file a proposed new form that would elicit information about the custody practices of the broker-dealer. Comments should be submitted within 60 days after publication in the Federal Register, which is expected during the week of June 20. SEC Press Release. See also Paredes Remarks (requesting comments on particular issues).