Commission Statement of Policy on the Establishment and Improvement of Standards Related to Auditor Independence

The Securities and Exchange Commission (``SEC'' or ``Commission'') today reaffirmed that maintaining the independence of auditors of financial statements included in filings with the Commission is crucial to the credibility of financial reporting and, in turn, the capital formation process. In so doing, the Commission recognized the establishment of the Independence Standards Board (``ISB'') and indicated that, consistent with its continuing policy of looking to the private sector for leadership in establishing and improving accounting principles and auditing standards, the Commission intends to look to the ISB for leadership in establishing and improving auditor independence regulations applicable to the auditors of the financial statements of Commission registrants, with the expectation that the ISB's conclusions will promote the interests of investors.