Washington, D.C.- Senator Tom Cotton (R-Arkansas) along with Senators Thom Tillis (R-North Carolina), Doug Jones (D-Alabama), and Kyrsten Sinema (D-Arizona) yesterday introduced the Small Business Audit Correction Act to provide much-needed regulatory relief to small investment brokers by exempting them from certain audit requirements and reinstating previous regulations. The bill was first introduced in the 115th Congress. Last year a similar version passed the House Financial Services Committee in bipartisan fashion.
"Requiring our small non-custodial broker-dealers to get the same audits required of public companies only results in higher costs and fewer small firms, and all because of a provision that wasn't even supposed to be aimed at non-custodial firms. This bill will return audit requirements to the former standard, one appropriate for these kinds of firms and which will allow our small broker-dealers to expand and help create more jobs," said Cotton.