PA Securities Regulator Calls for Congress to Restore Investor Confidence

WASHINGTON, April 21 /PRNewswire/ -- Pennsylvania Securities Commissioner Steven Irwin today urged Congress to help restore investor confidence in financial markets by addressing "abusive conduct" by Wall Street and perceived failures in oversight of corporate governance and executive compensation standards.

Testifying on behalf of the North American Securities Administrators Association (NASAA), Irwin, who also chairs NASAA's Federal Legislation Committee, told the House Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises that restoring public confidence in financial institutions is "the single most important task that confronts legislators and securities regulators."

Speaking for the regulators closest to investors, state securities officials, Irwin said the market and the nation will continue to suffer "without the belief that investors will be afforded fair and hones mechanisms to carry out their financial goals."

Noting that while stock prices have rallied during the last year, trading on the New York Stock Exchange is "down nearly 25 percent from a year ago" which "reflects the fact that Main Street investors have largely stayed out of the market."

Addressing the subcommittee chaired by Pennsylvania Cong. Paul Kanjorski, D-Wilkes-Barre, Irwin said, "The person in the street sees salaries of corporate decision makers constantly increasing to a level viewed as obscene, while at the same time the corporations being managed are decreasing in value, losing money, failing in competition and eliminating productive jobs."

Irwin, a Pittsburgh attorney, said increasing disclosure requirements to give shareholders access to full and accurate information is part of the solution. He pointed to NASAA's 2007 resolution on executive compensation disclosures and the Securities and Exchange Commission's recent amendments to proxy disclosure rules that require disclosure of risks arising from compensation policies.

In addition to expanding disclosure rules, Irwin advocated empowering shareholders by establishing legal mechanisms by which issues of executive compensation and other corporate governance matters can be raised and decided by those who have a real interest in the outcome.

The complete testimony and additional information on state securities regulators' ongoing efforts to improve investor protection are available on the NASAA website at www.nasaa.org.

NASAA is the oldest international organization devoted to investor protection. Its membership consists of the securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada and Mexico. – NASAA –

SOURCE Pennsylvania Securities Commission