The President's Working Group on Financial Markets released a report regarding the risks posed to U.S. investors in the financial markets by the Chinese government’s refusal to allow audit firms access, suggesting that the Securities and Exchange Commission enhance its listing standards on U.S exchanges.
“The PWG unanimously recommends that the Securities and Exchange Commission take steps to enhance the listing standards on U.S. exchanges for access to audit work papers, among other recommendations,” Treasury Secretary Steven T. Mnuchin, chairman of the PWG, said in a statement. “The United States is the premier jurisdiction in the world for raising capital, and we will not compromise on the core principles that underpin investor confidence in our capital markets.”
Enhancing listing standards could require access to audit data as a condition for continual listing.
The group advocates a transitional period, suggesting currently listed companies should comply by 2022.
The group released the recommendations on Thursday in response to a memorandum issued by Trump in early June.