In a letter to Congress and various regulatory bodies, NASRA, whose members are the administrators of public funds holding nearly $1.5 trillion in retirement assets for roughly 10 million participants, wrote that it hoped that the Enron collapse would spur reform and prevent similar financial disasters.
NASRA’s resolution supports:
- improved auditor independence standards
- improved auditor and accounting industry oversight,
- enhanced disclosure of potential conflicts of interest between members of corporate boards, the CEO and other executives,
- listing standards that strengthen board independence and composition,
- more effective enforcement actions that include holding individuals accountable for their actions and not just corporations insurance policies, and
- improved financial disclosure rules that require accurate and understandable financial reports.
Several public plans are involved in law suits against Enron in hopes of reclaiming some of their losses in Enron stock. The Florida Retirement System (FRS) alone lost $306 million on investments in Enron.