In March, the Public Company Accounting Oversight Board held hearings about whether to require public companies to change — or “rotate” — their external auditor periodically. Meanwhile, the European Union is proposing to require mandatory rotation every six or 12 years, and the lower house of the Dutch Parliament recently voted to require auditor rotation every eight years.
Category Archives: Article
US hedge funds rules relaxed by accident [FT.com]
Co-authored with Theresa Hamacher
Earlier this month, President Obama signed into law the Jobs Act, short for Jumpstart Our Business Startups. This Act won bipartisan support because it purports to create jobs by making it easier for small businesses to raise capital. However, the Jobs Act will also significantly loosen the regulatory requirements on hedge funds – whether or not this was the intent of Congress.
An Intermediate Approach to the Auditor Rotation Issue [Huffington Post]
In March the Public Company Accounting Oversight Board (PCAOB) held hearings about whether to require public companies to change (or “rotate”) their external auditor periodically. Similarly, the European Union has proposed mandatory auditor rotation every six or 12 years.
Public-pension pitfalls: What municipal budget troubles mean for bond investors [Washington Post]
Government workers’ pensions may sound like an obscure topic, but it’s front and center in some of the most rancorous of today’s political discussions. Retirement benefits for public workers are at the heart of the conflict between state and local governments and the unions representing their workers — and how that conflict gets resolved will affect investors in the municipal bonds issued by those states and cities. Let’s take a look at the looming public pension crisis, its effect on municipal finance and how accounting reform might help.
JOBS Act: Jumpstarting Business or Bilking Investors? [Real Clear Markets]
President Obama is about to sign into law the JOBS Act-short for “Jumpstart Our Business Startups.” This Act won bipartisan support because it reduces the regulatory burdens on capital raising by small businesses. However, many of the Act’s provisions leave investors too vulnerable to significant risks that they do not understand.
A guide to charitable investing [Trusts & Trustees]
Bill to help businesses raise capital goes too far [Washington Post]
With John Coates.
The House voted 390 to 23 last week for a bill to provide regulatory relief for small companies trying to raise capital. The bill is moving quickly through the Senate; no one likes unnecessary regulations that burden economic growth.
But this bill does more than trim regulatory fat; parts of it cut into muscle. Small businesses will have a harder time raising capital if investors do not receive sufficient disclosures or other legal protections.
Read the rest at the Washington Post.