November 26, 2003
D&O Insurance Developments At the
At the end of the summer, the SEC announced a policy change so that defendants who settle injunctive proceedings with the SEC – in which they neither admit nor deny the allegations – will be deemed by the SEC to admit the allegations for purposes of subsequent SEC administrative proceedings.
For TheCorporateCounsel.net members, learn how the D&O insurance industry has reacted – among other new developments in this industry – in my interview with Joseph Monteleone of The Hartford on D&O Insurance Developments.
2004 PCAOB Budget – and List of Non-Delinquent Companies
Yesterday, the PCAOB approved a $103 million budget for 2004, a 51% increase from 2003, including $26 million for information technology, $48 million for salaries and benefits, and $8.2 million for travel. Much of the increase is to add 100 new inspectors.
For the most part, the PCAOB is funded by fees charged to public companies – and the PCAOB has begun publishing a weekly list of which companies have paid their fees. It would probably be a more effective collection mechanism if the PCAOB published a list of delinquent companies. In fact, the list notes that the omission of a name does not mean that the omitted company is delinquent: “Just because an issuer does not appear on this list does not mean that the issuer has outstanding a past-due share of the accounting support fee.”
No word if the novel collection mechanism of prohibiting independent auditors from issuing “clean” opinions to any clients that are delinquent in paying the PCAOB is in effect yet. Gobble, gobble!