SOX Center

The Securities and Exchange Commission can now nominate its own candidates for the Financial Accounting Standards Board.

Under an agreement between the Securities and Exchange Commission and the parent foundation of the Financial Accounting Standards Board, the SEC will have more authority over the appointment of members of the private board, The Wall Street Journal reported Wednesday.

In a two-page memo sent to the SEC on March 9, FASB’s parent unit, the Financial Accounting Foundation, agreed with the commission that the FAF and FASB should generally notify the SEC 45 days before but no less than 30 days before the FAF nominates foundation or FASB members, according to the newspaper. The foundation also reportedly agreed to follow a set schedule for telling the SEC about potential appointments and reappointments to FASB and to the FAF board.

FAF also signed off on giving the SEC the chance to nominate its own candidates and to notify the SEC of finalists for any position, according to the Journal story. The agreement will also allow commissioners to interview nominees, the newspaper reported, citing a copy of the memo provided to it by FAF.

CFO.com: Report: SEC Grabs More Power over FASB