SEC Chairman Wants to Shift Focus

The new Securities and Exchange Commission chairman, Harvey Pitt, is intent on shifting the focus of the SEC from prosecuting corporate financial fraud to improving financial disclosure.

"I believe violations of law, if they occurred, have to be pursued with vigor," said Mr. Pitt," but I'm more concerned about protecting investors before violations occur."

Mr. Pitt has indicated he believes the SEC's first obligation is to make companies' quarterly and annual reports of profits and revenue "more relevant and timely and understandable for investors."

Investor advocate Barbara Roper of the Consumer Federation of America expressed concern about the shift from focusing on corporate and accounting fraud: "There's a real danger that companies will interpret Mr. Pitt's remarks as a wink and a nod and that they'll start testing where the legal line is."

You may like these other stories...

There’s a way for investors to brave the world beyond stocks and bonds of a traditional Individual retirement arrangement (IRA) and venture into real estate, tax liens, unregistered securities and so on. Their avenue...
KPMG LLP has agreed to shell out $8.2 million to settle charges from the US Securities and Exchange Commission (SEC), which found that the Big Four firm violated auditor independence rules by providing certain nonaudit...
By Jason Bramwell, Staff WriterJuly 1, 2014, is the date when the first set of municipal advisors will be required to register under new rules the US Securities and Exchange Commission (SEC) finalized last year.The SEC...

Upcoming CPE Webinars

Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.