SEC And CESR Publish Joint Work Plan

by Glen Shapiro, LawAndTax-News.com, New York

07 August 2006

The US Securities and Exchange Commission and the Committee of European Securities Regulators (CESR) on Wednesday published a joint work plan that will be implemented immediately.

The work plan directly results from the December 2005 meeting between SEC Chairman Christopher Cox and CESR Chairman Arthur Docters van Leeuwen, at which they emphasized their desire to build on the dialogue between the SEC and CESR in a concrete and practical manner.

The work plan will serve to guide the SEC-CESR Dialogue in the immediate future, and its main focus is the application by internationally active companies of International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (GAAP) in the United States and the European Union, respectively.

In addition, the staff of the SEC and CESR will forge a closer dialogue on the modernization of financial reporting and disclosure information technology, and regulatory platforms for risk management.

Chairman Cox observed on Wednesday that:

"As our markets grow more sophisticated, so must the relationships among regulators. The work plan demonstrates the intention of the SEC and CESR to have a forward-looking dialogue on key emerging issues, as well as take practical steps to encourage high-quality and consistent application of IFRS. The result will be greater protection and better disclosure for investors, particularly as they seek investment opportunities across the Atlantic."

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