H.R. 3763 - Corporate and Auditing Accountability, Responsibility,
and Transparency Act of 2002
(Rep. Oxley (R) Ohio and 30 cosponsors)
The Administration supports House passage of H.R. 3763 as an
important step toward improving corporate responsibility. The
bill is consistent with the President's "Ten Point Plan" and
is guided by the core principles of providing better information
to investors, making corporate officers more accountable, and
developing a stronger, more independent audit system.
The Administration endorses the creation of an independently-funded
regulatory organization under the supervision of the Securities
and Exchange Commission. The board would develop, monitor,
and investigate standards of professional conduct, and enforce
such standards, including sanctioning violations by individuals
and firms, subject to full supervision and review by the SEC.
The Administration also supports the provision authorizing
the SEC to ban individuals from serving as officers and directors
of public companies if they engage in serious misconduct.
In combination with the initiatives already undertaken by
the SEC, the bill will help to reaffirm the investing public's
confidence in the transparency and integrity of the U.S. capital
markets and its participants.
The Administration has reservations about certain other provisions
of the bill, and looks forward to working with Congress as
the bill proceeds through the legislative process.
