[Federal Register Volume 65, Number 185 (Friday, September 22, 2000)]
[Notices]
[Page 57410]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-24590]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION


Sunshine Act Meeting

    Notice is hereby given, pursuant to the provisions of the 
Government in the Sunshine Act, Pub. L. 94-409, that the Securities and 
Exchange Commission will hold the following meetings during the week of 
September 25, 2000.
    Closed meetings will be held on Wednesday, September 27, 2000 at 
11:00 a.m. and Thursday, September 28, 2000 at 3:00 p.m. An open 
meeting will be held on Thursday, September 28, 2000 at 2:00 p.m. in 
Room 1C30.
    Commissioners, Counsel to the Commissioners, the Secretary to the 
Commission, and recording secretaries will attend the closed meetings. 
Certain staff member who have an interest in the matters may also be 
present.
    The General Counsel of the Commission, or his designee, has 
certified that, in his opinion, one or more of the exemptions set forth 
in 5 U.S.C. 552b(c)(4), (8), (9)(A) and (10) and 17 CFR 200.402(a)(4), 
(8), (9)(A) and (10), permit consideration for the scheduled matters at 
the closed meeting.
    The subject matters of the closed meeting scheduled Wednesday, 
September 27, 2000 will be:
    Institution and settlement of injunctive actions; and
    Institution and settlement of administrative proceedings and 
enforcement nature.
    The subject matter of the open meeting scheduled for Thursday, 
September 28, 2000 will be:
    The Commission will hear oral argument on an appeal by the Division 
of Enforcement and the Office of the Chief Accountant from an initial 
decision of an administrative law judge in the matter of KPMG Peat 
Marwick LLP (``Peat Marwick'').
    This case involves allegations that certain circumstances impaired 
Peat Marwick's independence from an audit client, Porta Systems Corp. 
(``PORTA''). The law judge found that only one of these circumstances--
Peat Marwick's loan to PORTA's president--impaired Peat Marwick's 
independence. Because generally accepted auditing standards (GAAS) 
require that auditors be independent from audit clients, the law judge 
concluded that Peat Marwick violated the requirement in Rule 2-02 of 
Regulation S-X that an accountant's report accurately ``state whether 
the audit was made in accordance'' with GAAS. The law judge also 
concluded that, because Peat Marwick was not independent at the time it 
certified financial statements filed by PORTA as part of its 1995 
annual report, Peat Marwick caused PORTA to violate Section 13(a) of 
the Securities Exchange Act of 1934 and Rule 13a-1 thereunder. The law 
judge did not conclude, however, that Peat Marwick had engaged in 
improper professional conduct within the meaning of Rule 102(e) of the 
Commission's Rules of Practice. The law judge dismissed the proceeding 
insofar as it alleged that Peat Marwick engaged in improper 
professional conduct under Rule 102(e) and denied the Division's 
request for entry of a cease and desist order against Peat Marwick 
under Section 21C of the Exchange Act.
    Among the issues likely to be argued are the following:
    1. Whether Peat Marwick's loan to PORTA's president was the only 
independence impairing circumstance involved in this case;
    2. Whether Peat Marwick acted recklessly with respect to any 
independence impairing circumstances involved in this case; and
    3. Whether, and what, sanctions are appropriate remedies in this 
case.
    For further information, contact Rada L. Potts at (202) 942-0961.
    The subject matter of the closed meeting scheduled for Thursday, 
September 28, 2000 will be:
    Post argument discussion
    At times, changes in Commission priorities require alterations in 
the scheduling of meeting items. For further information and to 
ascertain what, if any, matters have been added, deleted or postponed, 
please contact:
    The Office of the Secretary at (202) 942-7070.

    Dated: September 20, 2000.
Jonathan G. Katz,
Secretary.
[FR Doc. 00-24590 Filed 9-20-00; 3:48 pm]
BILLING CODE 8010-01-M