Van Hollen Statement on PCAOB’s Historic Action Sanctioning Foreign Firms to Better Protect American Investors
Penalties made possible by the Senator’s Holding Foreign Companies Accountable Act
U.S. Senator Chris Van Hollen (D-Md.) released the following statement regarding the U.S. Securities and Exchange Commission’s announcement today that the Public Company Accounting Oversight Board (PCAOB) has imposed sanctions on three PCAOB-registered public accounting firms in China and Hong Kong. These sanctions represent the first time ever – pursuant to the Holding Foreign Companies Accountable Act, authored by Senators Van Hollen and Kennedy – that foreign companies operating on U.S. markets are held accountable following the law’s implementation of rigorous audits to ensure all companies operating on U.S. markets are held to the same standards and to reduce risk for American investors.
“Foreign companies operating on U.S. markets should be held to the same standards across the board. That’s why I introduced – and worked to enact into law – the Holding Foreign Companies Accountable Act. Today’s action by the PCAOB confirms what we long expected: not all companies are playing by the rules. This historic move both holds accountable bad actors attempting to take advantage of our markets and protects American investors, including retirees, parents building their child’s college funds, and many others. I’m glad to see the PCAOB crack down on these firms to ensure compliance with our market standards, just as our Holding Foreign Companies Accountable Act intended.”
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