WASHINGTON, Oct 16: US securities regulators on Wednesday proposed requiring companies to disclose more information about their internal controls and codes of ethics as part of an effort to implement legislation passed by Congress in response to a rash of corporate scandals.
By a 5-0 vote, the Securities and Exchange Commission put a rule out for comment that would require annual reports by companies on internal controls reviewed by outside auditors.
The commission also unanimously proposed a rule requiring companies to disclose whether they have a code of ethics for top officers, and any amendments or waivers to the code applying to those officers.
“Senior managers should make it clear to their employees that ethics matter ... It is good business to be open and honest with your shareholders,” said SEC Commissioner Roel Campos, speaking at an open commission meeting here.
At the meeting on Wednesday, the SEC was also expected to back proposals implementing other portions of the Sarbanes-Oxley Act that was signed into law in July, the largest overhaul of US securities laws since the 1930s.—Reuters
