Investing May 22, 2002

T+1 Timing Still Uncertain

May 22, 2002 (PLANSPONSOR.com) - The Securities Industry Association (SIA)'s Board of Directors will evaluate three scenarios for moving to T+1 settlement in the US at its July meeting.
Reported by

At the meeting, the trade group’s board will decide whether to:

  • retain the current T+1 timeframe of a June 2005 implementation,
  • take T+1 off the table completely, 
  • or postpone a decision on what to do about T+1 until June 2004

Don Kittel of the SIA said,”We could decide not to move to T+1 because the benefits to all players are not there but still opt to promote straight-through processing.”
Key steps to T+1 now in progress include:

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  • implementing central matching services, 
  • reducing certificates, 
  • redesigning the National Securities Clearing Corp.’s Continuous Net Settlement system, and 
  • an array of payment, standardization, corporate actions and securities lending initiatives

Don Kittell, EVP of the SIA, acknowledged that while questions remain on whether one-day settlement is better than three, concerns about whether the industry can move towards a straight-through processing environment without a T+1 mandate as a catalyst abound.


 

Benefits May 21, 2002

Ethics More Important in Post-Enron Hiring Process

May 21, 2002 (PLANSPONSOR.com) - Ethical behavior and responsive management are key issues for New York-area hiring managers and job seekers in the post-Enron era, according to the latest New York Times Job Market survey.
Reported by

According to the survey by the newspaper’s recruitment section, hiring managers are more likely to emphasize and job seekers are looking for the following organizational characteristics:

  • 58% of hiring managers and 46% of job seekers mentioned organizational ethics,
  • 56% of hiring managers and 41% of job seekers listed organizational rules of conduct,
  • 55% of managers and 38% of job seekers listed a candidate’s ethics,
  • 52% of managers and 50% of applicants hoped for consistent employee communications, and
  • 62% of managers and 46% of job seekers listed workers’ ability to access management with concerns or questions.

Loyalty and Ethics

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On a related issue, 83% of job seekers and 80% of hiring managers say employee loyalty is affected by an organization’s ethics. And 31% of job seekers, but only 5% of hiring managers, say they know of or suspect ethical violations at their organizations during the past year.

Enron has also affected applicants’ general outlook with 42% saying they are now more cynical about corporate America.

Meanwhile, 80% of applicants and 58% of managers say job applicants who are accountants are now perceived differently than before the scandal.

 

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