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August 19, 2014

Chinese Big Four firms granted more time to find settlement in SEC ban

By Testabc

The US Security and Exchange Commission (SEC) has again granted an extension to the court hearings on the six months ban prohibiting Big Four Chinese firms to provide services to US listed Chinese companies.

Following a joint motion by the Big Four firms and the SEC Division of Enforcement for an additional extension of briefing schedule, the SEC now granted another 45 days to find an out-of court settlement.

The SEC granted the extension as it accepted the parties’ argument that the settlement discussions would be progressing and "should continue to proceed without a need simultaneously to brief the appeals".

In January, a US Securities and Exchange Commission (SEC) judge had ruled that all of the Big Four Chinese joint ventures as well as BDO former Chinese firm, DaHua, had violated the Sarbanes-Oxley Act, and that they should be banned from working for any US-listed Chinese companies for the next six months.

The Chinese Big Four firms and the SEC Division of Enforcement have since then been in ongoing discussions in order to find an out-of-court settlement.

In June of this year, the SEC granted a first extension to the court hearings allowing the parties involved more time to find a settlement. The most recent extension order now postpones the first hearing date to 3 November 2014.

Related articles:

Big Four China firms in settlement talks with SEC

SEC judge issues services ban on the Big Four China firms

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