April 3, 2013

CAQ Commends SEC for Allowing Company Disclosures through Social Media

Washington, D.C. –The Center for Audit Quality (CAQ) today issued the following statement from Executive Director Cindy Fornelli on the U.S. Securities and Exchange Commission’s (SEC) report that allows public companies to disclose information via social media:

“The CAQ commends the SEC for allowing public companies to use social media to make disclosures to investors. SEC guidance for public companies on how to disseminate information through social media and inform a company’s investors about which social media channels are used helps ensure that all investors will have equal opportunity to get such information. 

As deputy director of the Division of Investment Management when the SEC first allowed an electronic only variable annuity offering, I observed firsthand how quickly unprecedented change in providing access to information can be accepted as the status quo. Adapting new technologies such as social media to provide increased information in real time to investors from Wall Street to Main Street is in the best interests of all capital market stakeholders.”

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The Center for Audit Quality (CAQ) is an autonomous public policy organization dedicated to enhancing investor confidence and public trust in the global capital markets. The CAQ fosters high quality performance by public company auditors, convenes and collaborates with other stakeholders to advance the discussion of critical issues requiring action and intervention, and advocates policies and standards that promote public company auditors’ objectivity, effectiveness and responsiveness to dynamic market conditions. Based in Washington, D.C., with an office in New York, NY, the CAQ is affiliated with the American Institute of Certified Public Accountants. For more information, visit www.thecaq.org.