SC upholds SEC's auditor authority

The Supreme Court (SC) has affirmed with finality the Securities and Exchange Commission’s (SEC) authority to accredit external auditors, ending a longstanding legal challenge that threatened the regulator’s oversight of capital markets.

- By JAMES A. LOYOLA

In a resolution dated Oct. 14, the SC denied a motion for reconsideration (MR) filed by 1Accountants Party-List Inc., stating that the group failed to present substantial arguments to reverse an earlier ruling.

The high court ordered the immediate entry of judgment and barred further pleadings on the matter.

The decision cements the SEC’s power to vet certified public accountants (CPAs) who audit “covered corporations” —entities that issue registered securities or hold secondary licenses, such as banks and investment houses.