October 28, 2015
It is an outrage that the SEC would is trying this run around financial disclosure rules. The job of the SEC is to advocate for investors, not to protect corporate profit at their expense. Loosening disclosure standards by suggesting that the standards need to only meet the low bar of legal fraud is relinquishing of your mandate to protect investors. The whole point is to avoid corporate fraud in the first place. You should be tightening standards not “reforming” them. The new rule, which you claim in the September FASB In Focus, will improve disclosure, is a blatant attempt to limit it. People understand that reform is a euphemism for decreasing oversight. The SEC is not fooling anyone with its jargon. The public is watching. We demand stronger standards that will decrease the likelihood of another financial disaster.
Katie Jacob