(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.)

New Accounting Board Proposes Bylaws, Registration System

The new Public Company Accounting Oversight Board filed its proposed bylaws with the SEC and proposed rules defining its registration scheme for audit firms. Proposals by the board must be approved by the SEC before becoming effective.

The board unanimously approved its proposed bylaws on January 9, 2003 and filed the bylaws with the SEC. The board stated that its bylaws are intended to implement the Sarbanes-Oxley Act by establishing a principal office in Washington, D.C., by establishing the composition of a governing board and by defining the powers and duties of the governing board and officers. If approved by the SEC, the bylaws will be effective as of the January 9, 2003, date.

The board's proposed registration system would apply to all public accounting firms, including foreign firms, that prepare or issue audit reports on U.S. public companies. The registration requirement also applies to firms that play a "substantial role" in the preparation or issuance of such reports. Comments on the registration proposals are due to the board by March 31, 2003. The board also announced that it will convene a public roundtable meeting on March 31, 2003, at which interested persons can present their views on the effect and operation of board registration and oversight of foreign public accounting firms.

¨ File No. PCAOB-2003-01 (SEC) is reported at ¶86,837 and PCAOB Release No. 2003-001 (PCAOB) is reported at ¶86,838 .