Privacy, Business and Law

On October 7, the Chairman of the U.S. Securities and Exchange Commission, Arthur Levitt, spoke before the American Council on Germany. His remarks focused on the need for strengthened and more modern principles of corporate governance due to technological changes that are moving society increasingly toward global markets. The Chairman stated “Information is the lifeblood of markets. But unless investors trust this information, investor confidence dies. Liquidity disappears. Capital dries up. Fair and orderly markets cease to exist. As the volume of information increases exponentially, the quality of information for investors and the markets they comprise must be our signal concern. The promise of a global marketplace, like never before, depends on it. As more countries move to an equity culture, high-quality financial information becomes the currency that drives the marketplace. And nothing honors that currency more than a strong and effective corporate governance mandate. A mandate that is both a dynamic system and a code of standards. A mandate that is measured by the quality of relationships: the relationship between companies and directors; between directors and auditors; between auditors and financial management; and ultimately, between information and investors. See Speech by SEC Chairman: Remarks to the American Council on Germany “Corporate Governance in a Global Arena” by Chairman Arthur Levitt, U.S. Securities & Exchange Commission, American Council on Germany, New York, N.Y., Oct. 7, 1999