Regulatory Alerts2018-05-08 | 2018-09721Added
Auditor Independence With Respect to Certain Loans or Debtor-Creditor Relationships
The Securities and Exchange Commission proposes amendments to Rule 2-01 of Regulation S-X to refocus auditor independence analysis on beneficial ownership rather than record ownership. The proposal replaces the existing 10 percent bright-line shareholder ownership test with a significant influence test and adds a known through reasonable inquiry standard for identifying beneficial owners. Additionally, the Commission seeks to amend the definition of audit client for funds to exclude certain affiliates and requests comment on other potential changes to auditor independence rules.
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