The Securities and Exchange Commission said it will move ahead with a plan that could require U.S. companies to use international accounting rules by 2014. The Commission affirmed its support for a global set of standards while reiterating that the agency will not decide on the timing of a switch to global rules until next year. (Bloomberg via BusinessWeek)
A unit of U.K. financial advice company RSM Tenon Group was fined £700,000 ($1.1 million) over allegations that it did not explain the risks to customers of products backed by guarantees from Lehman Brothers. RSM Tenon Financial Services did not treat its customers fairly and did not ensure suitable advice, the Financial Services Authority said. “TFS believes that the customer contact program it intends to undertake will demonstrate that the substantial majority of the relevant sales reflected appropriate advice to our clients,” the company said. “Since the period covered by the review, TFS has continued to enhance both its sales and compliance procedures and its management is satisfied that the issues highlighted in the FSA’s notice have been addressed.” (Bloomberg)
John Mack, chairman of Morgan Stanley, criticized the industry's pay practices. “I still don't think the industry gets it,” he said, noting that efforts to reform pay have focused too much on structure--deferring compensation, paying in stock, clawbacks--and not enough on the amounts. “If we don't do something, the government will do something” on pay, Mack said. (Reuters via New York Times)
Arthur Nadel, a former Florida money manager, pleaded guilty to running a Ponzi scheme that prosecutors say led to $162 million in investor losses. Sentencing is set for June. (Wall Street Journal)