Bill lets small broker-dealers skip strict federal audits.

What it does

The bill exempts small broker-dealers that do not hold client money. They can use standard audits instead of strict federal audit rules. The bill keeps some rules in place, like auditor independence and filing requirements. A broker-dealer can qualify if it has no felony convictions in the past ten years. It also must have no past regulatory orders against it.

Who it affects

Small broker-dealers save money on audit costs. People who buy stocks or bonds through these firms may have less check on the firms' practices. Audit firms that do standard audits may gain more work.

One thing to notice

Firms that skip federal audits lose access to federal check and catch by the PCAOB. The bill checks a firm's past once a year, but does not require real-time watch between audits.

From the analysis of the bill text, linked under Primary records below.

Where it stands

• Sep 22, 2026 — Introduced · Congress.gov: “Introduced in Senate”
• Sep 22, 2026 — Referred to Senate Committee on Banking, Housing, and Urban Affairs · Congress.gov: “Read twice and referred to the Committee on Banking, Housing, and Urban Affairs”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Words to know

• broker-dealer — A company that buys and sells stocks and bonds for people.
• PCAOB — The federal board that inspects and registers audit firms and enforces audit rules.