CalPERS Says 2002 Investor Protection Act is Essential to Rout Out Corporate Fraud and Greed; Urges Its Members and All Investors to Push for Swift Congressional Action.Business/News Editors The California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Public Employees' Retirement System (CalPERS) believes the Public Company Accounting Reform And Investor Protection Act of 2002 represents a significant opportunity for financial market reforms and investor protections to help stop the endless cycle of scandals in the marketplace. The System, which has been pushing for passage of congressional legislation, today strongly urged its members and fellow investors to fax their U.S. Senators asking for their support on the Act (S 2673), drafted by Senate Banking Committee Chairman Paul Sarbanes Paul Spyros Sarbanes (Greek: Παύλος Σπύρος Σαρμπάνης) (born February 3, 1933), a Democrat, is a former United States Senator who represented the state of Maryland. (D-MD). CalPERS posted sample letters for organizations and individual investors to fax to their Senators on its Shareowner share·own·er n. See shareholder. Noun 1. shareowner - someone who holds shares of stock in a corporation shareholder, stockholder investor - someone who commits capital in order to gain financial returns Forum at www.calpers-governance.org. The Act will provide much needed auditor independence and accounting oversight
Oversight may refer to:
"There is currently a crisis of confidence with the accounting industry," said James E. Burton, Chief Executive Officer for CalPERS. "The independence of accounting firms that audit financial statements of public companies must be beyond reproach re·proach tr.v. re·proached, re·proach·ing, re·proach·es 1. To express disapproval of, criticism of, or disappointment in (someone). See Synonyms at admonish. 2. To bring shame upon; disgrace. n. . The conflicts of interest that are prevalent throughout the accounting industry have fueled the erosion of investor confidence. Nothing but a `bright-line' ban will end the inherent conflicts created when an external auditor The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. is simultaneously receiving fees from a company for non-audit work," Burton said. At a recent meeting of the System's trustees, CalPERS investment staff reported on a review of 1,200 U.S. companies in the System's stock portfolio during the 2002 proxy season. The results indicated that more than half of the audit firms' revenues were derived from non-audit services. "We consider this unacceptable and a significant impediment A disability or obstruction that prevents an individual from entering into a contract. Infancy, for example, is an impediment in making certain contracts. Impediments to marriage include such factors as consanguinity between the parties or an earlier marriage that is still valid. to objective and independent auditing," added Burton. The Act also calls for creating an oversight board for regulating accounting firms that audit public companies that would represent the interests of investors, and those whom investors rely upon. CalPERS believes that this new body must have the power to investigate, adjudicate adjudicate (  jōō´dikāt´),v and discipline the industry through authority set by Congress, as well as have an independent funding mechanism. CalPERS has estimated that its unrealized and realized stock and bond losses in WorldCom total more than $580 million. CalPERS is the nation's largest public pension fund with assets totaling approximately $150 billion. The System provides retirement and health benefits to more than 1.3 million State and local public employees and their families. |
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