SEC: Y2K problems should be disclosed.(Securities and Exchange Commission, Year 2000 computer problems)

National Underwriter Life & Health-Financial Services Edition, November, 1997 by Brostoff, Steven

Washington

Year 2000 computer problems that could have a material impact on corporations--including insurers, investment companies and investment advisers--should be disclosed, according to a staff legal bulletin issued by the Securities and Exchange Commission.

The bulletin, issued on Oct. 8, says that companies must disclose year 2000 problems if either the cost of addressing the issue, or the cost of a failure to address the issue in a complete and timely manner, is likely to have a material financial impact on the company.

In recent testimony before the Senate Banking Committee, Brian Lane, director of the SEC's division of corporate finance, said companies should not ignore this issue.

"Companies that fail to take this...

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