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

SEC Offers Assistance to Hurricane Victims

The SEC announced plans to offer regulatory relief to investors, companies and securities firms affected by Hurricane Katrina. The agency has established a list of contact numbers for investment advisers located in the areas affected by the hurricane and provided a telephone number and an e-mail hotline for contacting the SEC. The SEC has also provided information to investors about safeguarding their finances and is monitoring the marketplace for fraudulent schemes directed at hurricane victims.

SEC Chairman Christopher Cox stated that no one in the region affected by the hurricane should be concerned about filing government documents in their circumstances. The SEC published a notice extending the filing deadlines for those affected by the disaster, and the SEC's divisions and offices are also preparing relief measures to suspend document delivery requirements in affected areas for broker-dealers whose offices are no longer operable. The SEC plans to consult with public companies that are based in the affected areas to ensure that Commission mandates do not interfere with the response and recovery efforts and pledged to take all necessary steps to assist in the recovery.

The SEC's order conditionally exempts affected persons from the requirements of the federal securities laws with regard to Exchange Act filings for the period from and including August 29, 2005, through October 14, 2005, the proxy information and delivery requirements and, for 90 days, the annual and semiannual report requirements of registered investment companies. The SEC has also suspended the auditor independence requirements relating to the provision of bookkeeping services for audit clients.

The SEC's order is intended to address a broad class of companies and others affected by the hurricane. However, for those parties that require additional assistance or a different response, the SEC advised that the staff will address those issues on a case-by-case basis, including problems with the completion of audits or in complying with the internal control requirements of Sarbanes-Oxley Act Section 404.

Twenty-six investment adviser firms from the affected region have submitted contact information to the SEC which has been posted on its Web site. Any investment adviser that wishes to be included in the list should contact the SEC's Atlanta district office. The SEC plans to update the page as often as it receives new information from Gulf-area investment advisers. The SEC urged investors to periodically check their account balances if they have left their home because of the hurricane and to immediately notify the financial services firm of any discrepancies, transfers of money or purchases and sales of securities that the investor did not authorize.

The SEC stated that it is aware of investment fraud scams and has urged investors to be on the alert. Investors should report suspected scams to the Enforcement Division at enforcement@sec.gov. The division will vigorously prosecute anyone who attempts to defraud victims of the hurricane, stated the SEC. Among the scams that have come to the division's attention are claims of trading programs guaranteeing high returns with a portion of the profits going to aid relief efforts. Others state that certain companies will profit from the relief and rebuilding efforts. The SEC warned that other scams are certain to emerge as fraud artists seek new ways to profit on the disaster. The SEC also warned the public about ensuring that they are donating to legitimate charities if they choose to contribute to the relief effort.