The Investment Company Institute has conveyed the mutual fund industrys support for accounting and auditing reform. In a letter to Senate Majority Leader Tom Daschle (D-SD) and Senate Minority Leader Trent Lott (R-MS) dated today, ICI President Matthew Fink called for the support for action by the Senate and enactment of reform legislation by the Congress.
"We believe those who review the financial condition of publicly held companies [agree] that it is necessary to bolster the independence of the accounting standard-setting process, strengthen the oversight of public auditing and increase the authority and resources of the Securities and Exchange Commission," Fink wrote.
Fink pointed towards bi-partisan legislation passed by the House earlier this year, legislation the Senate Banking Committee has proposed which will soon go to Senate consideration and changes to the financial reporting regulatory systems proposed by the SEC.
Fink also maintained that it is critical to restore confidence in the financial reporting system for publicly held companies.
"Today, the need for middle-income families to save and invest is more important than ever," Fink wrote. "In the absence of a coherent legislative and regulatory response, revelations about shortcomings in the nations financial reporting system could erode confidence in investing as a prudent means to achieve long-term savings and investing goals."
A strong response by Congress would strengthen the efforts of the SEC and help to restore that confidence, Fink maintained.