October 16, 2000
Jonathon G. Katz, Secretary
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549-0609
Dear Mr. Katz,
The purpose of this letter is to make you aware of a very serious and overreaching proposal by the Securities and Exchange Commission (SEC), that undermines the authority of Congress and imperils the future of professional services firms. As a Partner in the international firm of KPMG, I personally know that this proposal will seriously weaken our ability to serve clients and threaten our viability.
The issue is a proposal by the SEC to restrict services that firms like mine can offer to audit clients. The SEC believes that providing external audit and other non-audit consulting services to the same client is not appropriate. There is no evidence of a need for such restriction, and our record of providing independent, objective audit services has not been compromised by our ability to address other business needs of our clients.
Please express your concerns to SEC Chairman Arthur Levitt today, and urge him to reconsider these actions that will have such a serious negative effect on my profession.
Thank you very much for your assistance and support. I would greatly appreciate receiving a copy of your correspondence to Chairman Levitt and the SEC. Please contact me if you have questions or need additional information.
Very truly yours,
Robert D. Long
Office Managing Partner