The Securities and Exchange Commission has revealed a blueprint for how it plans to ensure that financial-services firms can detect and prevent cybersecurity issues. The plan includes questions examiners might ask, such as whether and when malware was detected. "With the public disclosure of this questionnaire, the SEC is giving up the surprise of one aspect of their exam program and opting to provide to SEC-registered financial firms a rare chance to prepare," said John Reed Stark, former chief of Internet enforcement at the regulator.
Final regulations released by the Internal Revenue Service on Tuesday clarify when a substantial risk of forfeiture exists in a transfer of stock to an employee as part of the employee's compensation. The existence of a substantial risk of forfeiture postpones recognition of the income under Sec. 83 of the Internal Revenue Code.
Certain small estates can obtain an extension of time to make a portability election without jumping through the hoops previously required by the Internal Revenue Service. Under Revenue Procedure 2014-18, surviving spouses who meet the criteria can make a portability election by filing a Form 706 estate tax return no later than Dec. 31. The guidance also applies to the estates of decedents in same-sex marriages whose filing status was changed by the U.S. Supreme Court's decision striking down parts of the Defense of Marriage Act. To qualify for the simplified method under Rev. Proc. 2014-18, the decedent must have had a surviving spouse, have died after Dec. 31, 2010, and on or before Dec. 31, 2013, and have been a U.S. citizen or resident at death. Listen to a podcast from Bob Keebler covering the relief for missed portability elections in Rev. Proc. 2014-18.
For the first time in its history, the Securities and Exchange Commission will have two people heading up its enforcement division. Chairman Mary Jo White said Andrew Ceresney will join acting enforcement director George Canellos to head the division, the agency's largest.
Securities and Exchange Commission Chairwoman Mary Jo White has approved rules requiring brokers and investment advisers to adopt identity-theft prevention programs -- the so-called Regulation S-ID. The Dodd-Frank Act transferred responsibility for the rules to the SEC and the Commodity Futures Trading Commission. The rules, which apply only to certain SEC-regulated entities, require them to put in place procedures that identify and follow up on indicators that may be present in instances of identity theft.