15 U.S.C. § 7218 — Accounting standards

Page 2334 TITLE 15—COMMERCE AND TRADE § 7218 (3) Censure of Board members; removal from office The Commission may, as necessary or appro- priate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of this Act or the securities laws, re- move from office or censure any person who is, or at the time of the alleged misconduct was, a member of the Board, if the Commission finds, on the record, after notice and oppor- tunity for a hearing, that such member— (A) has willfully violated any provision of this Act, the rules of the Board, or the secu- rities laws; (B) has willfully abused the authority of that member; or (C) without reasonable justification or ex- cuse, has failed to enforce compliance with any such provision or rule, or any profes- sional standard by any registered public ac- counting firm or any associated person thereof. (Pub. L. 107–204, title I, § 107, July 30, 2002, 116 Stat. 765; Pub. L. 111–203, title IX, § 929F(i), July 21, 2010, 124 Stat. 1855.) Editorial Notes REFERENCES IN TEXT This Act and the Sarbanes-Oxley Act of 2002, referred to in text, are Pub. L. 107–204, July 30, 2002, 116 Stat. 745. Title I of the Act is classified generally to this sub- chapter. For complete classification of this Act to the Code, see Tables. CONSTITUTIONALITY For information regarding the constitutionality of certain provisions of this section, see the Table of Laws Held Unconstitutional in Whole or in Part by the Su- preme Court on the Constitution Annotated website, constitution.congress.gov. AMENDMENTS 2010—Subsec. (d)(3). Pub. L. 111–203 substituted ‘‘any person who is, or at the time of the alleged misconduct was, a member’’ for ‘‘any member’’ in introductory pro- visions. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking. § 7218. Accounting standards (a) Omitted (b) Commission authority The Commission shall promulgate such rules and regulations to carry out section 77s(b) of this title as it deems necessary or appropriate in the public interest or for the protection of inves- tors. (c) No effect on Commission powers Nothing in this Act, including this section and the amendment made by this section, shall be construed to impair or limit the authority of the Commission to establish accounting prin- ciples or standards for purposes of enforcement of the securities laws. (d) Study and report on adopting principles- based accounting (1) Study (A) In general The Commission shall conduct a study on the adoption by the United States financial reporting system of a principles-based ac- counting system. (B) Study topics The study required by subparagraph (A) shall include an examination of— (i) the extent to which principles-based accounting and financial reporting exists in the United States; (ii) the length of time required for change from a rules-based to a principles- based financial reporting system; (iii) the feasibility of and proposed meth- ods by which a principles-based system may be implemented; and (iv) a thorough economic analysis of the implementation of a principles-based sys- tem. (2) Report Not later than 1 year after July 30, 2002, the Commission shall submit a report on the re- sults of the study required by paragraph (1) to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Com- mittee on Financial Services of the House of Representatives. (Pub. L. 107–204, title I, § 108, July 30, 2002, 116 Stat. 768.) Editorial Notes REFERENCES IN TEXT This Act, referred to in subsec. (c), is Pub. L. 107–204, July 30, 2002, 116 Stat. 745, known as the Sarbanes- Oxley Act of 2002. For complete classification of this Act to the Code, see Tables. CODIFICATION Section is comprised of section 108 of Pub. L. 107–204. Subsec. (a) of section 108 of Pub. L. 107–204 amended section 77s of this title. § 7219. Funding (a) In general The Board, and the standard setting body des- ignated pursuant to section 77s(b) of this title, shall be funded as provided in this section. (b) Annual budgets The Board and the standard setting body re- ferred to in subsection (a) shall each establish a budget for each fiscal year, which shall be re- viewed and approved according to their respec- tive internal procedures not less than 1 month prior to the commencement of the fiscal year to which the budget pertains (or at the beginning of the Board’s first fiscal year, which may be a short fiscal year). The budget of the Board shall be subject to approval by the Commission. The budget for the first fiscal year of the Board shall be prepared and approved promptly following the appointment of the initial five Board mem- bers, to permit action by the Board of the orga- nizational tasks contemplated by section 7211(d) of this title.