Securities Advisory: Update on the Sarbanes-Oxley Act (Fifth in a Series): SEC Issues Proposed Rules on Audit Committee Financial Experts
11/22/2002
The Securities and Exchange Commission (SEC) recently issued a rule proposal that would require issuers to disclose in their annual reports the names and number of persons serving on their audit committees who could be considered "financial experts." This advisory discusses who would be considered a "financial expert," who makes that decision, what this designation would mean for a director designated as one, when and where this information must be disclosed, and how this rule might require a change in your audit committee.
