SEC: 20th Anniversary of Regulation FD

 

On August 15, 2000, the United States Securities and Exchange Commission (SEC) adopted Regulation Fair Disclosure, often referred to as Regulation FD. The rulemaking was controversial, and the vote of the Commissioners to approve Regulation FD was 3 to 1 in favor. The SEC’s Chairman at the time, Arthur Levitt, believed that Regulation FD was necessary to “level the playing field” for investors, by prohibiting the selective disclosure of material non-public information to market professionals. On the other side of the debate, some feared that Regulation FD would have a chilling effect on the communications between public companies and the market, while others worried that Regulation FD would lead to information overload, where public companies would be obligated to frequently disclose too many material developments.

Over the past twenty years, Regulation FD has significantly shaped the framework for public company communications. The SEC has enforced Regulation FD judiciously, seeking action in the most egregious cases to send a clear message to public companies about the conduct that is expected in accordance with the rules. Regulation FD has also adapted with the changing times, as the Commission has provided guidance on the dissemination of material nonpublic information through websites and social media channels. Today, Regulation FD stands as a key component of the regulation of corporate disclosure.

The SEC Historical Society has prepared an extensive review on the 20th Anniversary of Regulation Fair Disclosure. The review includes an audio program that provides A Historical Perspective on the Development, Implementation and Enforcement of Regulation FD on its twentieth anniversary.

Understanding Reports on Financial Statements

Over the years, the CICA has published guidance to help readers understand the various reports that may accompany financial statements. The 2010 version of the Guide states that: "Chartered Accountants are valued for their integrity and proven financial expertise. The CA’s signature on an audit report means that the CA has conducted an examination of the organization’s financial statements, has expressed an informed opinion on the fairness of the financial information, and can provide reasonable assurance on the presentation of the organization’s financial position, performance and cash flows."

It is important to note, however, that not all financial statements are audited. Many small organizations do not require an audit. Their reporting needs can be met in other ways — through reviews or compilations. Whether the CA is required to perform an audit, a review or a compilation those who read financial statements and the accompanying communication can be confident that the engagement was conducted with the utmost integrity and professionalism.  

Chartered Accountants provide three levels of service with respect to communications on financial statements — an audit, a review or a compilation. These services are conducted in accordance with relevant ethical requirements that are set out in Rules of Professional Conduct/Codes of Ethics applicable to the practice of public accounting issued by the various accounting bodies. These Rules/Codes apply to the services provided by public accountants and generally cover the fundamental principles of professional ethics.

To learn more, download the 16-page Guide titled Understanding Reports on Financial Statements.

Rogers’ Chocolates since 1885

 

Rogers' Chocolates celebrated its 125th Anniversary on October 25th, 2010. The company is steeped in tradition and a rich history that has earned them a reputation as one of Canada's premiere chocolate makers. The first Rogers' chocolates were made in 1885 by Charles "Candy" Rogers in the back of his grocery store in Victoria, British Columbia. He quickly became a popular man.

In 1891, Rogers expanded his chocolate operation to the company's current heritage storefront on Government Street in Victoria and the rest, as they say, is history. Today, there are 8 retail stores, several hundred wholesale outlets that ship to over 50 countries, and a 20,000 square-foot factory.  For more information, visit the History webpage. Also, see the timeline on A Brief History of Chocolate from 250BC to 2010, and view the Rogers Videos on YouTube.

 

A short history of female Chartered Accountants (CAs) in Canada

As the above chart shows, women in Canada have come a long, long way since their beginnings in the CA profession. To gain a true perspective on how far women have come in the profession, it’s enlightening to look back — way back — to 1922, when Mercy Ellen Crehan and Florence Eulalie Herkins became the first women to be admitted to membership. It seems the welcome was not exactly glorious: in the June 1966 issue of CAmagazine (then called The Canadian Chartered Accountant), FCA and former federal MP Ellen Fairclough wrote that one of the women “found it necessary to ‘defect’ to the United States to earn a living in her chosen profession.”

Over the next decades, the number of women in the profession grew ever so slowly. As Steve Brearton wrote in “A century of CAmagazine” (June/July 2011), “Even the opportunities afforded women during the Second World War to demonstrate their obvious competence barely opened doors.” By 1966, there were still only 125 women members — a situation that Fairclough bemoaned. “[The number] leaves much to be desired, particularly when there is such a demand, even an urgent need, to fill the vacancies which appear to be increasing in number in the profession. The question arises whether the profession is to be deprived of the services of qualified people because of age-old prejudices and inhibitions.”

By the mid-1970s, things were slowly starting to move. In 1976, Pamela Jermey became the first woman to garner top marks on the Uniform Final Examination (UFE). And in 1979, women took all three top spots on the UFE honour role. In a January 1980 CAmagazine editorial, Nelson Luscombe wrote, “There’s every indication that [women’s] presence will continue to increase, both in numbers and significance.” He cited an article in the same issue predicting that females would begin to be appointed to partnership in the early 1980s and that by the end of the first decade of the next century, the proportion “should reach 30%.” That last prediction did not come true. Is it time to make another?

 Find out more by reading the articles in the December 2012 Special Issue of CAmagazine online, in particular, the article “Women at Work” by Rosalind Stefanac.