Proposed Rule: Implementation of Section 10A of the Securities Exchange Act of 1934

The Securities and Exchange Commission ("Commission" or "SEC") today is soliciting comments on proposed rule amendments to implement the reporting requirements in section 10A of the Securities Exchange Act of 1934 (the "Exchange Act"). Section 10A requires, among other things, that the auditor of a registrant's financial statements report to the registrant's board of directors certain uncorrected illegal acts of the registrant, and that the registrant notify the Commission that it has received such a report. If the registrant fails to provide that notice, the auditor is required by section 10A to furnish directly to the Commission the report given to the Board. The proposed amendments to the Commission's Exchange Act Rules are intended to implement those reporting requirements. The proposed amendment to Regulation S-X would conform the definition of "audit" in that regulation with the wording in section 10A.