In their meeting in Washington, EU Internal Market Commissioner Charlie McCreevy and SEC Chairman William Donaldson discussed "a range of topics of mutual interest between the (SEC) and the European Union, including the importance of compatible approaches to furthering investor protection and expanding the use of high-quality global accounting standards," the SEC said in a news release.

McCreevy wants the SEC to revise its rules to allow privately-held European companies to more easily end having to file reports with the agency. A number of European companies have complained about the burden and cost of new U.S. financial reporting requirements under the Sarbanes-Oxley anti-fraud law enacted in 2002 in response to the corporate scandals.

McCreevy recently told The Wall Street Journal that he believed the requirement for non-U.S. companies to show they have fewer than 300 U.S. shareholders to qualify was unreasonable.

In their meeting, Donaldson "noted the goal of finding a solution that will preserve investor protections without inappropriately designing the U.S. market as one without an exit," the SEC said.

The agency is expected to consider a rule proposal before year's end, it said.

McCreevy and Donaldson also discussed a plan to end in steps over four years U.S. financial reporting standards from being applied to foreign companies that already adhere to international standards.