The Commission has scheduled an open meeting on Nov. 15 to consider the adoption of the controversial proposed independence rules. The meeting is scheduled for 10 a.m. EST.

"In recent weeks, much progress has been made. The rhetoric has died down and honest ideas have been exchanged," said Commission chairman Arthur Levitt. "While I respect the views of those in Congress and in the profession who believe the SEC should defer its rulemaking, I believe the delay will not serve the interests of America's investors."

Tuesday's announcement came as a surprise to many in the profession, including the American Institute of CPAs, which believes there is more room for negotiation and discussion.

"Certainly not all of the issues have been agreed to," the Institute said in response to SEC's announcement. "While we are not surprised that the SEC would go to final rulemaking before the end of the year, we are surprised that there apparently is an intention to go to rulemaking before all parties have reached agreement."

The proposal has been a sore spot for many in the accounting community, including three of the Big Five firms and the AICPA, who believe that the proposal -- which limits the services audit firms can provide to audit clients -- could harm audit quality, prevent firms from attracting talent and perhaps force accounting firms to sell their consulting units. PricewaterhouseCoopers and Ernst & Young submitted a proposal of their own.

In the past few weeks, negotiations have intensified as lawmakers urged the SEC to delay action on the proposal -- a request that has fallen on deaf ears.

Gary Shamis, a managing partner of tax and accounting firm Saltz, Shamis & Goldfarb and chairman of the AICPA Management of an Accounting Practice Committee, opposes the proposal and said he isn't too surprised with Levitt's decision.

"It is my belief that Levitt wanted to rule on this while he still had control over it," said Shamis. "If they come out with a rule we can live with it doesn't matter if it is now or six months from now."

Big Five firm KPMG, an opponent of the proposal, finds it "disappointing" that the SEC is moving this quickly.

"All along we thought the process was being rushed and it is another example of the rushed process," said firm spokesman, Bob Zeitlinger. "We were negotiating with the SEC and for them to go to the media and announce the vote and not come to us is disappointing."

-- By Antoinette Alexander

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