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Sarbanes-Oxley News & Developments
SEC to NYSE: Practice What You PreachExchange must at least match the governance standards it demands from listed companies.
> > Self regulatory organizations (SROs) play a critical role as standard setters for sound governance practices said SEC Chairman William Donaldson. SROs have demanded that their listed companies strengthen their governance practices, we must demand that, at a minimum, SROs match the standards they set for listed companies, Donaldson said to the Senate Securities and Investment Subcommittee on Wednesday.
Donaldson also said there are a number of related issues that merit additional attention by the SEC. They include board composition and independence of directors; the independence and function of key board committees; the transparency of the SROs decision-making process; and the diligence and competence required of board and committee members to ensure their focus on the adequacy of regulation. Donaldson conceded that an SRO that operates a market has an inherent conflict of interest between its role as a market and as a regulator.Robert Greifeld, chief executive of NASDAQ, agrees.
After the Senate subcommittee hearing, Donaldson said that SEC approval was imminent for the new listing standards proposed by the NYSE and NASDAQ more than a year ago, according to Reuters.
Source: CFO
Published:2003-10-16
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