SEC Chair Supports Harmonization of China-Related Actions

SEC Chair Jay Clayton advocated for the harmonization of the "Holding Foreign Companies Accountable Act" (see previous coverage as it relates to the auditors of Chinese issuers) and the recommendations from the Report of the President's Working Group on Financial Markets Report (see previous coverage as to the inability of the regulators to have access to the auditors of Chinese companies).

In his public statement, Mr. Clayton characterized the harmonization as a "pragmatic step" towards considering the overlap between the legislation and future SEC rulemaking.

Mr. Clayton stated that he directed SEC staff to consider (i) a single consolidated proposal related to the Public Company Accounting Oversight Board's access to audit papers, exchange listing standards and trading practices, and (ii) how to implement the proposed legislation in a manner that is consistent with Congressional intent and investor protections.

Additionally, Mr. Clayton highlighted SEC actions that were prompted by the report, including the SEC Division of Corporation Finance's Disclosure Guidance Topic No. 10 (see previous coverage).