TheCorporateCounsel.net

On Friday, the SEC announced that it approved the PCAOB’s Rule 6100, Board Determinations Under the Holding Foreign Companies Accountable Act. Rule 6100 establishes a framework for the PCAOB’s determinations under the Holding Foreign Companies Accountable Act (HCFAA) that the PCAOB is unable to inspect or investigate completely registered public accounting firms located in a foreign jurisdiction because of a position taken by an authority in that jurisdiction.

The HFCAA prohibits trading in a company’s stock if the company uses an audit firm for three consecutive years that a foreign jurisdiction prevents the PCAOB from inspecting completely, as determined by the PCAOB.

PCAOB Rule 6100 is effective immediately. In a statement issued on Friday, Chair Gensler noted that the Commission is on track to finalize by year-end the interim final rules that the Commission adopted earlier this year to implement the HFCAA.

– Dave Lynn