U.S. to Enhance Securities Enforcement against Listed Foreign Companies Doing Business in Embargoed Countries

On May 8, 2001, a letter from the U.S. Securities and Exchange Commission’s (SEC) Acting Chairman announced a plan whereby the SEC will demand enhanced disclosure from foreign companies listed on the U.S. exchanges that are doing business with countries under a U.S. embargo. Laura Unger, the Acting SEC Chairman, in her May 8 letter to Frank Wolf, a Republican who chairs the House of Representatives Appropriations Subcommittee with responsibility for the SEC, disclosed the SEC will require foreign companies to disclose if they are doing business in any country where U.S. companies would be prohibited from investing...[more]