Information security & privacy

A study commissioned by a technology trade group says federal legislators should obtain more information before passing online privacy laws. It also says that, if passed, current legislative proposals will effectively require businesses to build costly compliance tracking systems and many companies will stop sharing information about their online customers

At a securities industry conference on money laundering, an SEC director encourages compliance by broker-dealers ( www.sec.gov/news/speech/spch486.htm ).

Questions about the independence of investment analysts are attracting the SEC’s attention. Its acting chairman and its chief accountant worry that brokerage house researchers may be tailoring investment recommendations to suit their investment banking clients ( www.sec.gov/news/speech/spch477.htm ; www.sec.gov/news/speech/spch485.htm ).

The federal reserve board of governors adopts a rule that revises official staff commentary on regulation E, which implements the Electronic Funds Transfer Act. The new rule provides compliance guidance on electronic check conversion transactions, computer-initiated bill payments and electronic authorizations of recurring debits from a consumer’s bank account (

To combat online fraud and improve the public’s confidence in doing cross-border business on the Internet, the United States joins 12 other nations in launching econsumer.gov, a multilingual Web site where consumers can obtain information about relevant laws and agencies and submit e-commerce-related complaints online ( www.ftc.gov/opa/2001/04/econsumer.htm ).

A new survey examines retirement plan sponsorship by businesses with fewer than 100 employees. Among reasons business owners cite for not offering a plan are their uncertainty about future revenue and workers’ preference for higher wages or other benefits ( www.ebri.org/sers/2001/index.htm ).

Corporations whose press releases provide pro forma earnings should also include a reconciliation to GAAP results, according to best practices guidelines jointly issued by the Financial Executives Institute and the National Investor Relations Institute ( www.niri.org/publications/alerts/ea042601.cfm ).

Fewer than three of four workers saved for retirement in 2000, says a new survey. According to researchers, while health care expenses worry workers who have tried to estimate their retirement needs, those who have not fret less about their retirement income ( www.ebri.org/rcs/2001/index.htm ).

The National Association of Insurance Commissioners says its plan to improve the uniformity, efficiency and effectiveness of state insurance regulation will serve consumers better than the American Council of Life Insurers’ call for an optional federal charter for life insurance companies. Meanwhile, the Shadow Financial Regulatory Committee—an independent research group—evaluates

Gary S. Schieneman, CPA, begins a two-year term with FASB on July 1, replacing Anthony T. Cope, who has joined the International Accounting Standards Board ( http://accounting.rutgers.edu/raw/fasb/news/nr051401.html ). The United Kingdom’s accounting standards board appoints Douglas Flint to a three-year term ( www.frc.org.uk/publications/publication335.html ).

A new IFAC discussion paper examines the methods different countries’ accounting organizations advocate for defining and achieving competence in professional accountancy. Comments are due by October 31 ( www.ifac.org/News/LastestReleases.tmpl?NID=99010990012150 ). The Organisation for Economic Co-operation and Development’s initiative on harmful tax practices draws the opposition of the U.S. Treasury secretary,