SEC Chairman Arthur Levitt today made it clear the agency has no plans to loosen financial reporting requirements to encourage foreign companies to list on U.S. stock exchanges.
Addressing a conference organized by the American Institute of Certified Public Accountants, Mr. Levitt said he had serious concerns with a proposal that the SEC relax reporting standards for selected ``world class'' foreign companies by allowing them to list their stocks without adjusting their accounting disclosures to follow U.S. generally accepted accounting principles.
``I fear that loosening reporting requirements for selected foreign filers ultimately could discriminate against (individual investors) and risk a loss of confidence in U.S. capital markets,'' he said.
Instead, Mr. Levitt favors the development of international accounting standards based on U.S. rules.
