SEC calls for renewed compliance commitment

5 December 2008

The Securities and Exchange Commission's (SEC) Office of Compliance Inspections has called on the chief executive officers of all registered companies to maintain their commitment to compliance procedures during the economic downturn.

In a letter issued to 18,260 investment advisers, broker-dealers, mutual funds and transfer agents subject to SEC compliance obligations, Office of Compliance Inspections director Lori Richards said that while many firms are cutting costs and reducing their staff, their legal obligation to maintain adequate compliance programs remains undiminished.

The letter comes after SEC chairman Christopher Cox told the organization's CCOutreach National Seminar that giving "short shrift" to regulatory compliance leaves investors, employees, management and other stakeholders open to "unacceptable risks".

"Now more than ever, companies need to take a long-term view on compliance and realize that their fiduciary responsibility requires a constant commitment to investors," he commented.

In other news, the SEC has approved new regulations to govern the oversight of US credit rating agencies.



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