[December 02, 2008] UPDATE 1-US SEC warns CEOs against cutting compliance plans Tweet WASHINGTON, Dec 03, 2008 (Reuters via COMTEX) -- The U.S. Securities and Exchange Commission told chief executives at registered financial services firms on Tuesday that they must keep up their compliance programs despite undertaking cost-cutting measures. Lori Richards, director of the SEC's office of compliance inspections and examinations, said in the letter that the companies need to "be vigilant and proactive" to ensure that interactions with investors meet high standards and that sales and trading practices are appropriate. She also said that financial, valuation and risk controls must be followed and that companies must continue meeting their disclosure obligations. "By fulfilling their obligations, regulated firms in the financial services industry can help to restore and bolster public confidence in the fairness and integrity of our markets and market participants," Richards said. The letter said many companies are considering reductions and cost-cutting measures, but those cutbacks should not expose their investors, employees and management to unacceptable risks. The letter came a day after the National Bureau of Economic Research announced that the United States had entered a recession in December 2007. (Reporting by Karey Wutkowski and Julie Vorman, editing by Gerald E. McCormick) Keywords: FINANCIAL/SEC COMPLIANCE (E-mail:[email protected] +1 202 898 8399) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. MMMM [ Back To TMCnet.com's Homepage ]