By Suzanna Kerridge, 28 July 1999 15:30
NEWS US brokerage firms which fail to complete Y2K compliance by 15th November could be closed down by the Securities and Exchange Commission (SEC). Arthur Lewis, SEC chairman, said that any firm that cannot achieve Y2K remediation "in a timely fashion will be required to cease doing business by 1 December." Explaining the decision he said a few firms' lack of readiness could have adverse effects for "countless others". It was unacceptable, he said, to threaten the integrity of the system. The SEC estimates that one per cent of the 3,900 brokerage firms in the US will not be ready by 31st August. John Thurwell, director of the British Bankers Association, agreed with SEC's course of action: "It's the responsibility of the regulators to make sure the markets function properly after the date change," he told Silicon.com. "The principle of the regulators is to maintain an orderly market and I wouldn't disagree with anyone about that." The UK Financial Services Authority said it would use all the powers it has to protect its investors, depositors and policy holders from disruptions. But it would not name a cut-off date for compliance.
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