SEC Appoints New PCAOB Chairman and Board Members

The US Securities and Exchange Commission (SEC) has appointed a new Chairman and members to the Public Company Accounting Oversight Board (PCAOB) to replace the existing PCAOB.

The new Chairman of the PCAOB will be William D. Duhnke III. According to the SEC, Duhnke is currently the Staff Director and General Counsel to the US Senate Committee on Rules and Administration. He previously served as Staff Director and General Counsel to the Senate Committee on Banking, Housing and Urban Affairs and the Committee on Appropriations. He replaces PCAOB Chairman James Doty, who had previously announced his departure from the PCAOB.

The SEC also announced the appointment of the following new members to the PCAOB:

  • J. Robert Brown. Brown is currently a professor of law at the University of Denver, where he is Director of the Corporate and Commercial Law program and is the Lawrence W. Treece Professor of Corporate Governance. He has previously served on the staff of the SEC
  • Kathleen M. Hamm. Hamm is currently the Global Leader of Securities and Fintech Solutions and Senior Strategic Advisor on Cyber Solutions at Promontory Financial Group and has previously worked at the SEC
  • James G. Kaiser. Kaiser is currently a partner and the Global Assurance Methodology & Transformation Leader at PricewaterhouseCoopers, where has responsibility for the firm's adherence to international auditing standards
  • Duane M. DesParte. DesParte will soon retire as Senior Vice President and Corporate Controller of Exelon Corporation, where he has been employed for the past 14 years.

SEC Modifies Form N-PORT Filing Requirements

The US Securities and Exchange Commission (SEC) has issued a temporary final rule to require funds in larger fund groups to maintain in their records the information that is required to be included in Form N-PORT, in lieu of filing reports with the Commission, until April 2019. They are to make the reports available to the SEC upon request. Smaller fund groups will continue to benefit from a filing start date that is one year after larger fund groups begin filing the form.

The SEC made this change pending completion of its assessment of its cybersecurity risk profile and approach to cybersecurity. The review includes a focused review and uplift of EDGAR, which Form N-PORT uses, and other systems.

The SEC adopted Form N‑PORT to require registered investment companies to report enhanced information about their monthly portfolio holdings in a structured data format. Larger fund groups are to begin filing Form N-PORT through the EDGAR system in April 2019. Smaller fund groups are to begin filing in April 2020. To ensure that investors do not lose access to important information, the SEC is requiring funds to continue filing public reports on existing Form N‑Q until they begin filing reports on Form N-PORT using EDGAR. 

The temporary rule is effective 30 days after publication in the Federal Register and is effective until 31 March 2026.

The temporary final rule is available on this link. https://www.sec.gov/rules/interim/2017/33-10442.pdf

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