Audit Firm Oversight Under Scanner

Steven Bobson, Europe & Americas Editor
November 17, 2010 /

The US Securities and Exchange Commission and the Financial Services Authority of UK in a meeting held at London had discussed oversight of audit firms among various issues of common concern.

Mary Schapiro, Chairperson of SEC and Stephen Haddril, C.E.of FRC had in their agenda various efforts put forth by US and Europe on regulatory reforms. The oversight of audit firms imparting services across the border into the US and UK, investor access to corporate proxies, and restructuring of rules governing disclosure by the issuer were primarily discussed.

The US Securities and Exchange Commission and the Financial Services Authority of UK also compared notes concerning oversight of over the counter derivatives trading, high frequency trades. “Flash crash” on the US stock exchange that took place on May 6 and the latest regulatory initiatives regarding credit rating agencies and cross border enforcement sharing between SEC and FCA were reviewed.

Later, Chairperson Schapiro and Adair Turner, Chairman FSA reaffirmed commitment of their agencies for working together in order to improve oversight and regulations of their respective securities markets with emphasis on regulated firms that are globally active and having presence in both the countries.

Turner said that they would confront all issues floating across the border and which demand international coordination. He added that there was need for identifying common ground in dealing with such issues of common interest and asserted that continuous exchange of dialogue was crucial for this process.

In September 2010, FSA had discovered lot of shortcomings and had taken steps to bring improvement upon the consistency and quality of reports submitted by auditors.


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