SEC Adopts Amendments Related to Holding Foreign Companies Accountable Act
By Stephen Nakrosis
The U.S. Securities and Exchange Commission on Thursday said it
adopted amendments which finalize rules regarding submission and
disclosure requirements in the Holding Foreign Companies
The rules pertain to registrants which "filed an annual report
with an audit report issued by a registered public accounting firm
that is located in a foreign jurisdiction and that the Public
Company Accounting Oversight Board is unable to inspect or
investigate," known as Commission-Identified Issuers, the SEC
According to the SEC, those Commission-Identified Issuers must
submit documentation to the SEC "establishing that, if true, it is
not owned or controlled by a governmental entity in the public
accounting firm's foreign jurisdiction."
"If you want to issue public securities in the U.S., the firms
that audit your books have to be subject to inspection by the
PCAOB," Gary Gensler, chair of the SEC, said.
"The Commission and the PCAOB will continue to work together to
ensure that the auditors of foreign companies accessing U.S.
capital markets play by our rules. We hope foreign governments
will, working with the PCAOB, take action to make that possible,"
Congress passed the Holding Foreign Companies Accountable Act in
2020 as an amendment to the Sarbanes-Oxley Act of 2002. Under the
law, certain issuers must disclose to the SEC information about
foreign jurisdictions that prevent PCAOB from performing
The SEC said it would identify Commission-Identified Issuers for
fiscal years beginning after Dec. 18, 2020.
Write to Stephen Nakrosis at email@example.com
(END) Dow Jones Newswires
December 02, 2021 14:06 ET (19:06 GMT)
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