Saturday, January 07, 2006

SEC rethinks policy on corporate fraud fines


The Securities and Exchange Commission on Wednesday responded to criticism of big fines imposed on companies hit by accounting fraud by publishing a set of principles it will follow in dealing with future cases.

According to a statement agreed by all five SEC commissioners, the main considerations will be whether a company directly benefited from a fraud and whether a fine will compensate investors or cause them further harm.

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