Briefing Paper on Proposed Rule - Public Company Accounting ...
Briefing Paper on Proposed Rule - Public Company Accounting ...
Briefing Paper on Proposed Rule - Public Company Accounting ...
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BRIEFING PAPERApril 16, 2003 <strong>Public</strong> Meeting of the Board<strong>Proposed</strong> Ethics CodePage 3 of 5compensati<strong>on</strong> outside of service to the Board. Even if not for compensati<strong>on</strong>, noBoard member or staff may engage in any outside activity which interferes withhis or her resp<strong>on</strong>sibilities to the Board, or creates even a reas<strong>on</strong>able appearanceof a c<strong>on</strong>flict of interest.• Staff may <strong>on</strong>ly undertake outside employment or other activity for compensati<strong>on</strong>if approved by the Board (or a Board designee, e.g., its Chief Administrative orEthics officers).• Board members and professi<strong>on</strong>al staff are prohibited from participating in anydecisi<strong>on</strong> materially affecting a former employer, business partner or client for <strong>on</strong>eyear from the date of appointment or hire. This prohibiti<strong>on</strong> <strong>on</strong>ly applies, however,when the prior business relati<strong>on</strong>ship terminated within five years before joiningthe Board.• Board members and professi<strong>on</strong>al staff are prohibited from practicing before theBoard or the Securities and Exchange Commissi<strong>on</strong>, with respect to Board-relatedmatters, for <strong>on</strong>e year after leaving the Board. This provisi<strong>on</strong> is specificallyrequired by Secti<strong>on</strong> 101(g)(3) of the Act.• The Ethics Code represents a c<strong>on</strong>diti<strong>on</strong> of employment with the Board. Boardmembers and all staff must annually certify compliance.The Board will designate an Ethics Officer to oversee compliance with these proposedrules and provide guidance to the Board and staff as necessary.<strong>Public</strong> CommentInterested parties are encouraged to submit their views to the Board. Written commentsshould be sent to Office of the Secretary, PCAOB, 1666 K Street, N.W., Washingt<strong>on</strong>,D.C. 20006-2803. Comments may also be submitted by e-mail tocomments@pcaobus.org or through the Board’s website at www.pcaobus.org. Allcomments should refer to PCAOB <strong>Rule</strong>making Docket Matter No. 003 in the subject orreference line and should be received by the Board no later than 5:00 PM (EDT) <strong>on</strong>May 9, 2003.The Board will carefully c<strong>on</strong>sider all comments received. Following the close of thecomment period, the Board will determine whether to amend its proposal, will adopt afinal Ethics Code, and will submit this final Code to the Securities and ExchangeCommissi<strong>on</strong> for approval. Pursuant to Secti<strong>on</strong> 107 of the Act, Board rules do not take