SEC Raises Stakes for Financial Reporting
The Wall Street Journal reported this morning that the Securities and Exchange Commission (SEC) is preparing to release new proposed rules to reinforce more accurate financial reporting. The “claw back” rules will require financial institutions to recollect executive pay if the firm has to re-report financial results. The conditions would apply to any instance where a company must reissue financial reporting.
The rulemaking is required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The SEC panel is expected to vote on the rules on July 1, 2015, and then issue the rules for public comment. The announcement comes just one day after Democratic Senator Elizabeth Warren (D-MA) slammed the SEC and SEC Chair Mary Jo White for failing to implement all of the necessary Dodd-Frank Act rulemakings.