(The news featured below is a selection from the news covered in the Federal Securities Report Letter, which is distributed to subscribers of the Federal Securities Law Reports.)

Financial Disclosure Rules Adopted

The SEC adopted rule changes to require specific disclosures in Exchange Act filings. The rules are intended to implement provisions of the Sarbanes-Oxley Act. As adopted, companies will be required to: 1) make disclosures concerning the identity and independence of financial experts serving on the company's audit committee; and 2) disclose whether they have adopted a code of ethics that covers their principal executive officers and senior financial officers. The SEC is also requesting additional comments regarding the appropriate treatment of foreign private issuers in light of the proposed rules on audit committees under Section 301 of the act.

The rule changes are effective 30 days after publication in the Federal Register and comments on the treatment of foreign private issuers are due by February 18, 2003. Companies must comply with the code of ethics disclosure requirements in their annual reports for fiscal years ending on or after July 15, 2003. Companies, other than small business issuers, must comply with the audit committee financial expert disclosure requirements in their annual reports for fiscal years ending on or after July 15, 2003. Small business issuers must comply with the audit committee financial expert disclosure requirements in their annual reports for fiscal years ending on or after December 15, 2003.

¨ Release No. 33-8177 is reported at ¶86,818 .