Compliance News

Financial Reporting Council Publishes Its Annual Report for 2011/12

The Financial Reporting Council (FRC), the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment, publishes its Annual Report for 2011/12. The Annual Report describes the ways in which the FRC, working closely with its stakeholders, has contributed to promoting high quality confidence in corporate reporting and governance during [...]

Former “Teach Me to Trade” Salesman to Settle Securities Fraud Charges and Pay a $200,000 Penalty

The Securities and Exchange Commission announced that on September 5, 2012 the United States District Court for the Eastern District of Virginia entered a settled final judgment in Securities and Exchange Commission v. David Gengler, Lashaico, et al, Civil Action No. 1:08cv235 (E.D.Va. filed March 11, 2008). The final judgment resolves the Commission’s case against [...]

FRC Publishes Lab Report on ‘Net Debt Reconciliations’

The Financial Reporting Council (FRC) has released the Financial Reporting Lab’s (Lab) project report on ‘Net debt reconciliations (NDR)’. The Lab worked closely with five leading companies and a range of investors in preparing the observations contained in the project report. Comments on existing company disclosure were gathered by the Lab in a series of [...]

2013 U.S. GAAP Financial Reporting Taxonomy Now Available for Public Review and Comment

The Financial Accounting Standards Board (FASB) released the proposed 2013 U.S. GAAP Financial Reporting Taxonomy for public review and comment. The deadline to submit written comments is October 29, 2012. The taxonomy is a list of computer-readable financial reporting labels coded in XBRL, an open-source computer language that allows companies to tag precisely the thousands [...]

SEC Issues Financial Literacy Study

The Securities and Exchange Commission has issued a staff study with findings on what investors want to know about financial professionals and investment products and services, and when and how investors want to receive such information. “Understanding the needs of investors is critical to carrying out the Commission’s investor protection mission,” said SEC Chairman Mary [...]

SEC Proposes Rules to Implement JOBS Act Provision

The Securities and Exchange Commission is paving the way to eliminate the prohibition against general solicitation and general advertising in certain securities offerings. Under the proposed rules, which are mandated by the Jumpstart Our Business Startups Act, companies would be permitted to use general solicitation and general advertising to offer securities under Rule 506 of [...]

IOSCO Consults on Technological Challenges to Market Surveillance

The International Organization of Securities Commissions has published today a Consultation Report on the Technological Challenges to Effective Market Surveillance: Issues and Regulatory Tools, which seeks public comments on a series of proposed high-level recommendations aimed at helping Market Authorities improve market surveillance. This Consultation Report responds to a G20 mandate arising from the action [...]

SEC Adopts Rules Requiring Payment Disclosures by Resource Extraction Issuers

The Securities and Exchange Commission today adopted rules mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act requiring resource extraction issuers to disclose certain payments made to the U.S. government or foreign governments. The regulatory reform law directed the Commission to issue these rules requiring companies engaged in the development of oil, natural [...]

SEC Adopts Rule for Disclosing Use of Conflict Minerals

The US Securities and Exchange Commission has adopted a rule to require companies to publicly disclose their use of conflict minerals that originated in the Democratic Republic of the Congo (DRC) or an adjoining country. The regulatory reform law directed the SEC to issue rules requiring certain companies to disclose their use of conflict minerals [...]

AICPA Recommends Changes to IRS Form 990 Used by Public Charities

The American Institute of CPAs submitted recommendations to the Internal Revenue Service, suggesting improvements to the form on which tax exempt organizations report required information annually. The AICPA made 17 recommendations to the IRS about the changes it believes are important for the Form 990, Return of Organization Exempt from Income Tax, and the related [...]

Basel Committee Issues Document on Risks in Settling Foreign Exchange Transactions

The Basel Committee on Banking Supervision issued for consultation Supervisory guidance for managing risks associated with the settlement of foreign exchange transactions. The proposals update the committee’s supervisory guidance for managing settlement risk in foreign exchange transactions. Since publication of that guidance in 2000, the foreign exchange market has made significant strides in reducing the [...]

OFT Publishes Provisional Findings on Yellow Pages Undertakings

The Office of Fair Trading has published its provisional findings that undertakings given by Yell Group plc (‘Yell’ now known as hibu plc) relating to its Yellow Pages business may no longer be appropriate and that the Competition Commission should consider whether the company should be released from them. Yell gave the undertakings in 2007 [...]

FASB Issues Accounting Standards Update

The Financial Accounting Standards Board (FASB) has issued accounting standards update “Testing Indefinite-Lived Intangible Assets for Impairment.” The Update simplifies the guidance for testing the decline in the realizable value (impairment) of indefinite-lived intangible assets other than goodwill. Examples of intangible assets subject to the guidance include indefinite-lived trademarks, licenses, and distribution rights. The standard [...]

New Rules on Packaged Accounts Published

A new Financial Services Authority ruling is requiring banks and building societies to check whether customers are eligible to claim on insurance cover before selling them a packaged bank account. Packaged accounts are current accounts bundled up with a range of insurance policies and other features such as overdraft facilities or music downloads. In a [...]

IASB Staff to Develop Guidance for Micro-sized Entities Applying IFRS for SMEs

The staff of the International Accounting Standards Board (IASB) will develop guidance to help micro-sized entities apply the IFRS for Small and Medium-sized Entities (IFRS for SMEs). The SME Implementation Group (an advisory body to the IASB) will work with the staff in developing the guidance and will approve a final draft to be sent [...]

Regulatory Treatment of Valuation Adjustments to Derivative Liabilities

The Basel Committee on Banking Supervision has revised paragraph 75 of Basel III as regards its application to derivatives. The Basel III rule in paragraph 75 is designed to ensure that an increase in the credit risk of a bank does not, via a reduction in the value of its liabilities, lead to an increase [...]

Capitalisation of Bank Exposures to Central Counterparties

The Basel Committee issued interim rules for the capitalisation of bank exposures to central counterparties (CCPs). Since 2009, the Basel Committee has been working to give effect to the G20 Leaders’ goal of creating incentives for banks to increase their use of central counterparties (CCPs), while at the same time ensuring that banks’ exposures to CCPs are [...]

Basel III FAQs on Counterparty Credit Risk Rules

The Basel Committee on Banking Supervision issued frequently asked questions (FAQs) on Basel III’s counterparty credit risk rules. To promote consistent global implementation of Basel III, the Committee has agreed to periodically review frequently asked questions and publish answers along with any technical elaboration of the rules text and interpretative guidance that may be necessary. The [...]

Matthew Brown Settles Penny Stock Manipulation Charges

Chief Judge Gregory M. Sleet of the United States District Court for the District of Delaware entered a final judgment against Defendant Matthew W. Brown on July 2, 2012 in SEC v. Dynkowski, et al., Civil Action No. 1:09-361, a stock manipulation case the SEC filed on May 20, 2009, and amen ded on March [...]

CRMA PER Recipients Required to Comply with CPE Requirements in Year Following Activation

The IIA has changed the Continuing Professional Education (CPE) reporting requirements for holders of the designations it confers, including the Certification in Risk Management Assurance™ (CRMA®). In order to maintain an active CRMA status, CRMAs are required to earn CPE as outlined and must report credits earned by December 31st of the year following the [...]