FEI backs NYSE listing reforms. (Advocacy).FEI's Committee on Corporate Reporting, in a July 30 letter to the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , supported a new set of listing standards the exchange has proposed -- but with a number of caveats and qualifications. The NYSE's governors voted to approve the new standards on Aug. 1. In the letter, signed by CCR 1. CCR - condition code register. 2. CCR - (Database) concurrency control and recovery. Chairman Frank H. Brod, the committee applauds the NYSE's efforts "to enhance accountability, integrity and transparency in the financial statements and to restore investor trust and confidence in the market." CCR supports the NYSE NYSE See: New York Stock Exchange recommendation that all equity-based plans should require shareholder approval, calling that "an important check and balance" that would help "restore confidence in company compensation plans." However, the committee raised issues in several areas: Expanded audit committee responsibilities: CCR argues that it is "imperative to strike the right balance" between the committee's role and management's. While the audit committee must be proactive, "it cannot serve as a replacement for management or guarantee management's integrity." CCR recommends that the audit committee purpose "should not be extended to include compliance with legal and regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. ," saying those should be fulfilled by the company's general counsel. It also takes issue with the idea that the audit panel should have sole authority to retain and terminate the company's independent auditors Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. , saying that directors and company shareholders should also have a voice. Audit committee financial expertise: CCR said it does not support the requirement that the chairman of the audit committee have accounting or related financial management expertise. Such a requirement would "create challenges in rotating ro·tate v. ro·tat·ed, ro·tat·ing, ro·tates v.intr. 1. To turn around on an axis or center. 2. the position" and in finding qualified individuals, the committee said. Violations and reprimand REPRIMAND, punishment. The censure which in some cases a public office pronounces against an offender. 2. This species of punishment is used by legislative bodies to punish their members or others who have been guilty of some impropriety of conduct towards them. letters: The committee argued that while the exchange should have the authority to issue reprimands, "due process" must be adhered to in determining violations -- in part so that investors are properly informed and can make "educated decisions." To see the letter, click on www.fei. org/finrep/letters/nyse731.pdf. |
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