SEC Nominee Confirms His Support of FASB Option Expensing Rule

July 26, 2005 ( - US Representative Chistopher Cox (R-California) told a Senate committee that, if confirmed as SEC Chairman he would put the Federal Accounting Standards Board stock option expensing rule (FAS123) into practice.

According to Reuters, since President Bush nominated Cox for SEC chairman in June, critics have been concerned that he would try to delay or otherwise block the  option expensing rule .   Last year Cox co-sponsored a bill that tried to limit the FASB expensing rule to the top five officers of a company and delay its implementation. The measure passed the US House of Representatives but was not taken up by the Senate, Reuters notes.

“I will ensure that the Securities and Exchange Commission builds upon the record as already established and that the rule is implemented as the markets expect,” he said at his Senate Banking Committee confirmation hearing, Reuters reports.   In addition,  he told the committee that his “top priority will be vigorous enforcement of our securities laws.”

The committee is reviewing the nomination of Cox along with those of incumbent SEC Commissioner Roel Campos and SEC staff member Annette Nazareth. If approved by the Banking Committee, the nominations could go to a vote by the Senate this week, according to Reuters.