July 9, 2020: Staff Roundtable on Emerging Markets
Agenda and Panelists
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[+]9:30 a.m. ET | Opening Statements by Chairman Clayton and Commissioners
Opening Remarks by Chairman Clayton and Commissioners
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[+]10:00 a.m. ET | Panel One: Investments in Emerging Markets by U.S. Retail Investors
Panelists
- Carson Block, Founder and Chief Investment Officer, Muddy Waters Capital LLC
- Ryan LaFond, Deputy Chief Investment Officer, Algert Global
- Roger Robinson, President & CEO, RWR Advisory Group Moderators
Moderators
- Peter Driscoll, Director, Office of Compliance Inspections and Examinationsz
- S.P. Kothari, Chief Economist and Director, Division of Economic and Risk Analysis
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[+]11:00 a.m. ET | Panel Two: Limitations on Inspection and Enforcement in Emerging Markets; Auditors’ Global Oversight of Member Firms in Emerging Markets
Panelists
- William D. Duhnke III, Chairman, Public Company Accounting Oversight Board
- Julie Bell Lindsay, Executive Director, Center for Audit Quality
- Cheryl J. Scarboro, Partner, Simpson Thacher & Bartlett LLP
- Robert Zink, Chief of the Fraud Section, U.S. Department of Justice
Moderators
- Stephanie Avakian, Co-Director, Division of Enforcement
- Sagar Teotia, Chief Accountant
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12:00 noon ET | Lunch Break
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[+]1:30 p.m. ET | Panel Three: Disclosure and Reporting Considerations with Respect to Investments in Emerging Markets
Panelists
- Paul Gillis, Ph. D., Professor of Practice, Peking University’s Guanghua School of Management
- John May, Partner, SEC Services Leader, PwC US
- Amy C. McGarrity, Chief Investment Officer, Public Employees’ Retirement Association of Colorado
- Sarah Payne, Partner, Sullivan & Cromwell LLP
- Jill Walker, Senior Vice President, Corporate Financial Services, and Chief Accounting Officer, Starbucks Corporation
Moderators
- Raquel Fox, Director, Office of International Affairs
- William Hinman, Director, Division of Corporation Finance
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[+]2:30 p.m. ET | Panel Four: Improving Emerging Market Investing for US Retail Investors and Markets
Panelists
- Noriko Honda Chen, Equity Portfolio Manager, Capital Group
- Rodney Comegys, Principal Global Head of Vanguard Equity Index Group, Vanguard Equity Investment Group
- Sebastien Lieblich, Managing Director and Global Head of Index Solutions, MSCI
- John Tuttle, Vice Chairman and Chief Commercial Officer, NYSE Group Inc.
- John A. Zecca, Executive Vice President and Global Chief Legal and Regulatory Officer, Nasdaq
Moderators
- Dalia Blass, Director, Division of Investment Management
- Christian Sabella, Deputy Director, Division of Trading and Markets
Spotlight on Risks for Investors in Emerging Markets
Over the past decade, U.S. investors, and the U.S. capital markets more generally, have experienced an increase in their exposure to companies with significant operations in emerging markets, including China, now the world’s second largest economy. The exposure includes investments in both foreign private issuers, including through actively and passively managed mutual funds and exchange-traded funds, that are based in emerging markets or have significant operations in emerging markets, as well as U.S. issuers with substantial operations in these markets. In particular, as a result of the growth of the Chinese economy (a 128% increase in GDP from 2009 to 2019; rising from the 3rd largest economy to the 2nd largest economy) and related expansion in Chinese domestic and international capital markets activity, U.S. retail investors are more exposed to companies with significant operations in China. Investments in emerging markets entail significant disclosure, financial reporting and other risks for U.S. investors.
Select SEC Communications and Related Actions
- SEC Division of Economic and Risk Analysis, U.S. Investors’ Exposure to Domestic Chinese Issuers (7/6/2020)
- SEC Chairman Jay Clayton, Statement Announcing SEC Staff Roundtable on Emerging Markets (5/4/2020)
- Letter to the Honorable Rick Scott from SEC Chairman Jay Clayton (5/4/2020)
- SEC Chairman Jay Clayton, PCAOB Chairman William D. Duhnke III, SEC Chief Accountant Sagar Teotia, SEC Division of Corporation Finance Director William Hinman and SEC Division of Investment Management Director Dalia Blass, Emerging Market Investments Entail Significant Disclosure, Financial Reporting and Other Risks; Remedies are Limited (4/21/2020)
- SEC Chairman Jay Clayton, PCAOB Chairman William D. Duhnke III, SEC Chief Accountant Sagar Teotia and SEC Division of Corporation Finance Director Bill Hinman, Statement on Continued Dialogue with Audit Firm Representatives on Audit Quality in China and Other Emerging Markets; Coronavirus — Reporting Considerations and Potential Relief (2/19/2020)
- Press Release, SEC Chairman Clayton, PCAOB Chairman Duhnke, and Members of SEC Staff Meet With Auditing Firm Representatives to Discuss Audit Quality in Emerging Economies and Markets (11/4/2019)
- SEC Chairman Jay Clayton, Former SEC Chief Accountant Wes Bricker, and PCAOB Chairman William D. Duhnke III, Statement on the Vital Role of Audit Quality and Regulatory Access to Audit and Other Information Internationally—Discussion of Current Information Access Challenges with Respect to U.S.-listed Companies with Significant Operations in China (12/7/2018)
- Commissioner Luis A. Aguilar, Ensuring the Necessary Resources at the PCAOB (2/4/2015)
- Chair Mary Jo White, Regulation in a Global Financial System (5/3/2013)
- Commissioner Luis A. Aguilar, Providing Needed Resources to the PCAOB (2/13/2013)
- Commissioner Luis Aguilar, Capital Formation from the Investor's Perspective (12/3/2012)
- Chairman Mary L. Schapiro, Remarks at Stanford Center on Longevity — FINRA Investor Education Foundation Conference (11/3/2011)
- Letter to the Honorable Patrick T. McHenry from Chairman Schapiro (4/27/2011)
Public Company Accounting Oversight Board (PCAOB) Information
The PCAOB is currently unable to inspect audit work and practices of PCAOB-registered accounting firms in China (including Hong Kong, to the extent their audit clients have operations in China) with respect to their audit work of U.S. reporting companies.
Investors can access information about the PCAOB’s lack of access on the PCAOB’s website or by using the following links:
- PCAOB’s Summary of China-Related Access Challenges
- Public Companies that are Audit Clients of PCAOB-Registered Firms from Non-U.S. Jurisdictions where the PCAOB is Denied Access to Conduct Inspections
- PCAOB Staff Q&A: Audits of Mainland China Issuers by Registered Firms Outside of Mainland China
- PCAOB Data about its China-Related Access Challenges
- Referred Work Auditor Search Tool
Public Comments
Members of the public who wish to provide views on the risks of investing in emerging markets, including China, may submit their views electronically to
Or use the SEC’s Internet submission form.
Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make publicly available.