November 22, 2011

Senate Bill Would Require Greater PCAOB Transparency

Last week, as noted in this press release, Senators Jack Reed (D-RI) and Chuck Grassley (R-IA) introduced the “PCAOB Enforcement Transparency Act of 2011.” This bill will make PCAOB disciplinary proceedings public to bring auditing deficiencies at the firms they audit to light in a timely manner. This is in reaction with what happened with Deloitte recently, as I noted in this blog.

Sarbanes-Oxley requires PCAOB’s disciplinary proceedings to be kept confidential through charging, hearings, initial decision, and appeal, which enables firms that engage in misconduct to drag out the proceedings for years while the investors are kept in the dark. In comparison, nearly all administrative proceedings brought by the SEC against public companies, brokers, dealers, investment advisers, and others are open, public proceedings.

House Bill Would Require Shell Companies & LLPs to Disclose Contact Information

Last week, as reported in this Reuters article, a new bill has been introduced in the House would require shell companies and limited liability partnerships to provide names and contact information when they are formed. This is at least the 3rd time that this type of bill has been introduced and it’s heavily supported by law enforcement agencies.

Judges Needed for Fordham Securities Law Moot Court Competition

Each spring, Fordham Law School hosts the Kaufman Memorial Securities Law Moot Court Competition, which has a rich tradition of bringing together complex securities law issues, talented student advocates and top legal minds. Next year’s Kaufman Competition will take place on March 23-25, with a final round panel of Judge Kelly of the Tenth Circuit; Chief Judge Kozinski of the Ninth Circuit; Judge Martin of the Sixth Circuit; Judge Posner of the Seventh Circuit; Judge Jane Richards Roth of the Third Circuit; and SEC Commissioner Paredes.

They are currently soliciting folks to judge oral argument rounds and grade competition briefs. No securities law experience is required to participate and CLE credit is available – here is contact information to participate.

– Broc Romanek