In this new
Statement, a number of SEC and PCAOB officials—SEC Chair
Jay Clayton, PCAOB Chair William D. Duhnke III, SEC Chief
Accountant Sagar Teotia, Corp Fin Director William Hinman and
Investment Management Director Dalia Blass—discuss the risks
and exposures of companies based, or with significant operations,
in emerging markets, for both U.S. issuers and foreign private
issuers. Although the SEC is committed to high-quality disclosure
standards, its ability to enforce these standards in emerging
markets is limited and is "significantly dependent on the
actions of local authorities" and the constraints of
"national policy considerations." As a result, in many
emerging markets, "there is substantially greater risk that
disclosures will be incomplete or misleading and, in the event of
investor harm, substantially less access to recourse, in comparison
to U.S. domestic companies." The Statement is summarized
below. The message is that, notwithstanding similarity in
