SEC Official: Don't Expect Enforcement Slowdown

Despite outcries from companies and auditors on stringent corporate reform measures, Stephen Cutler, the director of enforcement at the Securities and Exchange Commission, said that the regulator does not plan to ease up anytime soon. According to Dow Jones, Cutler told an audience of corporate directors at Duke University that it would be a mistake to slow down on the reforms adopted in 2002 as a result of Sarbanes-Oxley. "I don't think anyone wants to return to the environment that allowed the scandals of Enron, WorldCom, Tyco and Adelphia to take seed and flourish," Cutler said. He also revealed that over the past two years, the SEC has collected more than $2 billion in fines. But he added that, despite increased vigilance and tougher measures, there remains a high frequency of financial restatements.