[Federal Register Volume 65, Number 159 (Wednesday, August 16, 2000)]
[Proposed Rules]
[Pages 49954-49955]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20667]


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SECURITIES AND EXCHANGE COMMISSION

17 CFR Parts 210 and 240

[Release No. 33-7880; 34-43133; File No. S7-13-00]


Revision of the Commission's Auditor Independence Requirements

AGENCY: Securities and Exchange Commission.

ACTION: Notice of additional hearings.

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SUMMARY: On June 27, 2000, the Securities and Exchange Commission 
proposed rule amendments regarding auditor independence (copies of the 
Proposing Release are available on the Commission's website at 
www.sec.gov/rules/proposed/34-42994.htm>). On July 26, 2000, the 
Commission held an initial public hearing in Washington, D.C. on its 
proposed rule amendments. We are now announcing that we will hold 
additional public hearings on the proposed rule amendments on September 
13, 2000 in New York, New York and on September 20, 2000 in Washington, 
D.C. The purpose of the hearings is to give the public the opportunity 
to present views

[[Page 49955]]

regarding the issues raised and questions posed in the Proposing 
Release.

DATES: The public hearings will be held on September 13, 2000 in New 
York, New York and on September 20, 2000 in Washington, D.C. (addresses 
to be announced). The hearings on both days will begin at 9:00 a.m. 
Parties who wish to testify at either hearing must submit a written 
request to the Commission specifying on which date they prefer to 
testify. The Commission must receive these requests on or before August 
25, 2000. Persons requesting to testify must also submit three copies 
of their oral statement, or a summary of their intended testimony, to 
the Commission. The Commission must receive these submissions on or 
before September 5, 2000. Interested parties who do not wish to appear 
at the hearings may submit written testimony by the end of the comment 
period for the Proposing Release (September 25, 2000) for inclusion in 
the public comment file.

ADDITIONAL INFORMATION: Requests to appear, oral statements or 
summaries of testimony, and other written testimony or comments should 
be mailed to Jonathan G. Katz, Secretary, Securities and Exchange 
Commission, 450 Fifth Street, NW, Washington, DC 20459 or filed 
electronically at the following e-mail address: [email protected]. 
All requests to appear, oral statements or summaries of testimony, and 
other written testimony or comments should refer to Comment File No. 
87-13-00. In addition, the words ``Request to Testify'' should be 
clearly noted on the subject line of the request. Copies of all 
requests and other submissions and transcripts of the hearing will be 
available for public inspection and copying in the Commission's Public 
Reference Room at 450 Fifth Street, NW, Washington, DC 20549. 
Electronically submitted requests and other materials will be posted on 
the Commission's intenet web site (www.sec.gov) following the hearings.

FOR FURTHER INFORMATION CONTACT: John M. Morrissey, Deputy Chief 
Accountant, or W. Scott Bayless, Associate Chief Accountant, Office of 
the Chief Accountant, at (202) 942-4400.

SUPPLEMENTARY INFORMATION:

I. Summary of Rule Proposals

    The public hearings concern the Commission's proposed rule 
amendments regarding auditor independence. As more fully described in 
the Proposing Release, the proposals modernize our requirements by 
providing governing principles for determining whether an auditor is 
independent in light of: investments by auditors or their family 
members in audit clients, employment relationships between auditors or 
their family members and audit clients, and the scope of services 
provided by audit firms to their audit clients. The proposals would, 
among other things, significantly reduce the number of audit firm 
employees and their family members whose investments in audit clients 
are attributed to the auditor. They would also identify certain non-
audit services that, if provided to an audit client, would impair an 
auditor's independence. The scope of services proposals would not 
extend to services provided to non-audit clients. The proposals also 
would provide a limited exception for accounting firms that have 
certain quality controls and satisfy other conditions. Finally, the 
proposals would require companies to disclose in their annual proxy 
statements certain information about, among other things, non-audit 
services provided by their auditors during the last fiscal year. The 
Commission will consider the hearing record in connection with its 
rulemaking proposals.

II. Procedures for Hearing

    After August 25, 2000, we will publish a schedule of appearances 
for the hearings to be held on September 13 and 20. Based on the number 
of requests received, we may not be able to accommodate all requests. 
As we did for the hearings held on July 26, we also may limit the time 
for formal presentations or group presentations into a series of 
panels. Time will be reserved for members of the Commission and 
Commission staff to pose questions to the witnesses concerning their 
testimony as well as other matters pertaining to the Proposing Release. 
The Commission has designated Jonathan G. Katz, Secretary of the 
Commission, as the hearing officer.

    Dated: August 10, 2000.

    By the Commission.
Jonathan G. Katz,
Secretary.
[FR Doc. 00-20667 Filed 8-15-00; 8:45 am]
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