Dive Brief:

• The Securities and Exchange Commission named Kurt Hohl, who previously worked at the commission from 1989 to 1997 and logged 26 years at the Big Four firm Ernst & Young, as the agency’s new chief accountant, according to a Friday press release. Hohl’s appointment is effective July 7.
• Hohl succeeds Paul Munter, who stepped down in January after holding the permanent chief accountant role since January of 2023, following a roughly two-year stint as acting chief accountant. Ryan Wolfe, who has been acting chief accountant since January, will return to his role as chief accountant of the division of enforcement.
• Newly appointed SEC Chair Paul S. Atkins, who was nominated by President Donald Trump, previously worked with Hohl during overlapping tenures at the SEC, according to the release. “Kurt is an experienced accountant with deeply technical knowledge and international experience, and we are lucky he has decided to return to the SEC,” Atkins said in a statement in the release, in which he also noted the importance of the role. “Given that I served with Kurt previously, I know firsthand that his integrity, along with his skills, will benefit our markets and investors.”

Dive Insight:

Hohl is taking the position during a pivotal time for accounting regulation. A sweeping tax bill now advancing in Congress contains provisions that would eliminate the Public Company Accounting Oversight Board — the watchdog for accounting firms that audit publicly traded companies — and fold its duties into the SEC.

While Hohl’s auditing and wide-ranging accounting experience could be useful if the SEC does take on the PCAOB’s responsibilities, the undertaking would still be a large one for anyone to oversee, according to Nicole Wright, an associate professor of accounting at James Madison University in Harrisonburg, Virginia — Hohl’s alma mater.

“The transition period, if this does occur, will be rough for anyone and I am not sure that anyone can be 100% prepared for what I think it will take for this to be a smooth and effective transition,” Wright said in an emailed response to questions. 

A certified public accountant, Hohl has a bachelor’s in business science in accounting from James Madison University and started his career at Deloitte Haskins & Sells, according to his LinkedIn profile. During his time at the SEC as an associate chief accountant, division of corporation finance, he authored a staff training manual which was a primary source for SEC accounting staff to interpret and apply federal securities laws and also was the author of an SEC Staff Accounting Bulletin 92 which was related to environmental contingencies, according to his LinkedIn.

At EY, he held a variety of roles including most recently as vice-chair of EY’s global assurance professional practice, where he was responsible for technical, regulatory, risk and quality oversight functions of its professional practice and a team of more than 1,400 employees.

Hohl said in a statement that it was currently “a pivotal time” for capital markets, noting that he was looking forward to working to “advance accounting and auditing policies that reinforce investor confidence, enhance transparency, and support innovation.” 

Hohl founded Corallium Advisors, which helps businesses manage auditing, regulatory compliance and initial public offerings, shortly after leaving EY in June of 2023.  

The SEC did not respond to a request for comment on Hohl’s plans for his new role. His predecessor, Munter, used his position to underscore his views on the importance of an accounting regulator and all manner of financial reporting issues, making a number of forceful speeches during his tenure that appeared to align with then-SEC Chair Gary Gensler’s positions. 

For example, while serving as acting chief accountant in 2022, Munter called out what he said were signs of a decline in the level of “professionalism” among employees at some of the largest accounting firms, CFO Dive previously reported. 

The office of the chief accountant is charged with protecting investors and acts as the principal advisor to the SEC on accounting, auditing and controls standards and regulation of financial reporting protecting investors, according to the SEC’s website.