Mixed Reactions on SEC Adoption of Proxy Access

After three failed attempts, the SEC has finally adopted a rule to let shareholders have their nominations for board directors included in the proxy statement. Michael Littenberg of the law firm Schulte Roth & Zabel says many public companies are “breathing a sigh of relief,” since the rule in its final form is “likely to mitigate the impact of proxy access in 2011.” Details inside.

Federal Contractors Prep for Greater Regulatory Scrutiny

A warning to federal contractors: Regulators are making good on their promise to reinvigorate enforcement against allegations of waste, fraud, and abuse. “My suspicion is that this is not going to ease any time soon,” says Joseph Dyer of law firm Seyfarth Shaw. Their latest target: executive compensation and sub-contractor awards.

FTC and DoJ Issue New Horizontal Merger Guidelines

The Federal Trade Commission and the Justice Department have issued long-awaited revised guidelines over how the agencies evaluate horizontal mergers among rival businesses. On the plus side, observers say the revised guidelines are more transparent; others say they offer less certainty about whether a deal will pass muster.

Small Cos. Still Under the Gun

With passage of the Dodd-Frank Act, small public companies now have a permanent exemption from Section 404(b) under Sarbanes-Oxley—but that doesn’t mean they are free of scrutiny. Companies must still establish and maintain an effective control environment, and report on the effectiveness of controls, says Alyssa Martin with audit firm Weaver. Details inside.

Survey: Cos. Lack Business Intelligence Capabilities

A new survey of technology executives reveals that most companies are still lagging in the analytical skills that help drive better decision making. The results underscore that most companies are “still struggling with fundamental technical and business process foundations … to implement and use business analytics in a strategic and sustainable way,” said John Lucker of Deloitte Consulting, which conducted the poll.

Analysis: FASB on Contingencies

Earlier this summer, FASB published an exposure draft over a new method for how companies should disclose the potential cost of contingencies such as lawsuits and other uncertain events. The revised proposal did recognize many of the concerns initially raised, but some issues still remain. So this week, Compliance Week Columnist Colleen Cunningham asks: Will this work? Her thoughts are inside.

Poll: Companies Struggle to Address Social Media Risks

A new Deloitte poll finds that most companies are still struggling with how to manage their social media risks. Out of more than 1,700 respondents, only 35 percent said their company has a social media policy in place. “[I]n terms of acting, companies are still struggling to figure out what to do,” says Benton Armstrong of Deloitte. He offers some helpful advice inside.

Proposed Taxonomy Updates

The Financial Accounting Foundation has published its proposed 2011 U.S. GAAP Financial Reporting Taxonomy, which has been updated to reflect the latest changes in accounting standards. The changes will be open for a 60-day review and comment period before it is finalized and published in early 2011. More details inside.

SEC Cautions Credit Agencies on Deceptive Ratings Conduct

The SEC issued a report this week cautioning credit rating agencies about deceptive ratings conduct and the importance of sufficient internal controls. The report cautions that, when appropriate, the SEC will pursue antifraud enforcement actions. CW legal blogger Bruce Carton has more details on the SEC report inside.

Herz Retires, FASB Expands
at Key Point in Convergence

After eight years of serving as FASB Chairman, Robert Herz has announced plans to retire. His departure comes at a time when the five-member FASB is expected to bring on two new members by early 2011, altering the composition of the board midway through a critical shakeup in U.S. accounting rules.

Reports Eye Life Settlement Regulation and Oversight

A lack of life settlement oversight has prodded two regulators to issue reports on this growing insurance market, seeking regulatory change. One report by the General Accounting Office seeks more protection for policy owners, while another report by the SEC seeks greater protections for investors. Full details on both reports are inside.

FASB Offers Up Smattering of Narrow Guidance Proposals

Despite some heavy duty accounting changes on its agenda, FASB is still making room for more narrow or industry-specific issues, with several proposals published in just the last week handed up by the board’s Emerging Issues Task Force. On the agenda: changes ahead for insurers and health care entities, among others. Full details inside.

Poll: Costs Drove Notice & Access Adoption for Issuers

A recent survey by Bowne and Mediant Communications regarding Notice & Access usage in 2010 showed that, out of 329 respondents, 42 percent had adopted the model. Cost savings was the main driver behind adoption, while others cited enhanced communication via the Internet, and a goal of becoming more economically responsible.