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Securities and Exchange Commission Manual and Public Comment Request

posted by Akin Gump

The Securities and Exchange Commission (SEC) recently issued a manual from its Division of Enforcement and a request for public comment on fair value accounting, both of which may clarify the Commission’s actions and decisions.

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Enforcement

Fair Value Accounting

The SEC Division of Enforcement published its first manual to codify its practices and procedures for investigations. While intended as an internal staff reference, the document will offer insight on how the Commission operates in enforcement matters and what it expects in its requests for information.

The full manual can be found here.

The SEC is also requesting public comment until November 13 on fair value (or “mark-to-market”) accounting, for its study mandated by the Emergency Economic Stabilization Act of 2008. The Commission also welcomes public comments on the issues, point-of-view, research and opinions it should consider in conducting the study.

More information on submitting public comments can be found here.

Section 133 of the Emergency Economic Stabilization Act states:

(a) STUDY–The Securities and Exchange Commission, in consultation with the Board [of Governors of the Federal Reserve System] and the Secretary [of the Treasury], shall conduct a study on mark-to-market accounting standards as provided in Statement Number 157 of the Financial Accounting Standards Board, as such standards are applicable to financial institutions, including depository institutions. Such a study shall consider at a minimum–

  • The effects of such accounting standards on a financial institution’s balance sheet
  • The impacts of such accounting on bank failures in 2008
  • The impact of such standards on the quality of financial information available to investors
  • The process used by the Financial Accounting Standards Board in developing accounting standards
  • The advisability and feasibility of modifications to such standards and
  • Alternative accounting standards to those provided in such Statement Number 157.