John Tan

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In an Order of Settlement released February 6, 2015, the SEC agreed to stay the administrative action against the Chinese affiliates of the “Big Four” accounting firms for refusing to turn over their audit work papers relating to several U.S.-listed Chinese companies. As we wrote earlier here, the Chinese affiliates of the audit firms had been facing a six-month bar from appearing before the SEC, which would have disrupted their business and the business…
On July 9, within just a few hours of the polls closing in the tightly contested presidential election in the world’s third-largest democracy – the Republic of Indonesia – the only two contestants running had claimed victory. Nearly 200 million people in the world’s fourth-largest country had turned out to vote for either the current Jakarta Governor Joko “Jokowi” Widodo or former military general Prabowo Subianto. Despite seven of the independently run “Quick Count” exit…
The Securities and Exchange Commission recently indicated that it would review, de novo, the January 2014 decision barring the Chinese affiliates of the “Big Four” accounting firms from appearing before the SEC.  The Commission’s Order, found here, also granted both parties’ motions to submit additional evidence for consideration – most significantly, the auditors’ evidence that they have given the Chinese regulators the audit work papers of the Chinese companies being investigated by the SEC.…
  In the first blow to land in the long running dispute between U.S. regulators and the accounting firms that certify the financial statements of China-based companies listed on U.S. exchanges, yesterday an Administrative Law Judge at the Securities and Exchange Commission (“SEC”) issued a decision barring the Chinese affiliates of the “Big Four” accounting firms from appearing before the SEC for a period of six months and censuring the Chinese affiliate of BDO.  This…
New enforcement actions and media allegations have been brought in China’s ongoing regulatory crackdown on the life sciences industry. Reed Smith continues to monitor these developments and has prepared this update on the pharmaceutical and device sectors. For a detailed summary regarding recent developments, click here.  …
This post was also written by Crystal Xu. China has been undergoing a significant regulatory crackdown on its life sciences industry over the past several months, primarily in the pharmaceutical and infant formula sectors. The focus of these enforcement actions may now have spread to the medical device sector. On August 15, 2013, the local Beijing office of the Ministry of Health (MOH) announced that it had begun a three month investigation into the use…
The Securities and Exchange Commission’s (“SEC”) power to obtain documents from U.S. companies and their auditors is a key component of its mandate to protect the marketplace from fraud. But what happens when the exercise of that power conflicts with the civil and criminal laws of another country? In the case of the SEC seeking documents of Chinese companies listed on U.S. exchanges, the result has been a long standoff between regulators in the two…
This post was also written by Christine Liu and Gordon Schatz. China’s Ministry of Health, along with five other government agencies, issued Trial Regulations on Centralized Procurement of High-Value Consumable Medical Supplies on December 17, 2012. These regulations went into effect immediately upon issuance and contain procedures for the centralized purchasing of a wide range of medical devices. Of particular note are the provisions addressing misconduct, which impose potentially significant penalties for commercial bribery and…
This post was also written by Terence Healy. Yesterday, the SEC instituted administrative proceedings against the Chinese affiliates of the “Big Four” accounting firms and BDO related to audits they conducted at nine Chinese companies. At issue is the accounting firms’ “willful refusal” to provide audit work papers and other materials the Commission seeks in its investigations into potential accounting irregularities at several China-based companies whose securities are publicly traded in the United States. The administrative…
Yesterday, November 15, the SEC issued its 2012 whistleblower report. A total of 115 (3.8%) tips were FCPA related. Additionally, 324 tips (10.8% of total) originated from overseas. The top overseas sources of tips were the UK (74, 23%), Canada (46, 14%), India (33, 10%), China (27, 8%), and Australia (21, 6%). No other single country had more than 10. Domestically, the states with the highest number of whistleblower tips per capita were Nevada,…