In a move intended to enhance the participation of investors and other users of financial information in the standard-setting process, FASB established the Investors Technical Advisory Committee (ITAC).
The committee comprises 12 members from the investment community with strong technical accounting and financial reporting knowledge. The panel will help FASB identify urgent accounting and financial reporting issues, propose new items for the board’s agenda and provide perspectives on the standard-setting process.
FASB plans to meet with ITAC in public sessions at least twice each year. Meetings with FASB staff are expected to occur quarterly.
A complete list of ITAC members is available at www.fasb.org/news/nr010207.shtml .
The SEC proposed rules designed to provide additional protection to investors in certain pooled investment vehicles including hedge funds. One new rule, under the Investment Advisers Act of 1940 (15 U.S.C. 80b), would clarify the SEC’s ability to bring enforcement actions against investment advisers who defraud investors in a pooled investment vehicle. The SEC said the clarification was needed in light of a recent District of Columbia Court of Appeals decision ( Goldstein v. SEC , 451 F.3d 873), which overturned the 2004 “Hedge Fund Rule” on SEC registration requirements for funds.
Two more new rules would revise requirements under the Securities Act of 1933 (15 U.S.C. 77) for determining an individual’s eligibility to invest in pooled vehicles. The definition of accredited investor, as the term is applied by some privately offered investment pools, may not provide sufficient protection to investors, the SEC said. The proposed rules are available at www.sec.gov/rules/proposed.shtml , which also has a link for submitting comments by March 9.