Dr. Luis Betancourt Hones His Skills at the SEC

Associate Professor of Accounting Dr. Luis Betancourt recently returned to the CoB from a year-long stint as an Academic Accounting Fellow in the Office of the Chief Accountant (OCA) at the Securities and Exchange Commission (SEC) in Washington, D.C.  Created by Congress in 1934, the SEC’s mission is to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation. Academic Accounting Fellows serve as a resource for the Commission and SEC staff by interpreting and communicating academic research related to the agency’s mission. Betancourt is the first JMU faculty member chosen for this honor and the only one in the country to serve in this capacity during the 2013-14 year. Each year about 20 to 30 faculty members from across the United States apply for the highly competitive appointment. Most of the Fellows selected come from research-intensive universities.

During his term, Betancourt primarily served as a resource on academic research for the Office of the Chief Accountant's Professional Practice Group.  The Professional Practice Group works closely with the Public Company Accounting Oversight Board to develop auditing policies and procedures that promote the development of reliable financial reporting information. This group also manages the resolution of auditor and preparer independence and ethical matters that have been brought to the attention of the Commission.  As the only academic in the Office of the Chief Accountant, Betancourt had to do extensive work in verifying the appropriateness of academic research citations and economic analysis used in proposed rules.

When asked why he applied for the position, Betancourt says, “All accountants know about the SEC’s Office of the Chief Accountant.   It is an extremely prestigious appointment and the center of accounting and auditing policy setting and enforcement in the U.S.  I wanted to experience it first hand.  I know it sounds geeky but being an Academic Accounting Fellow was on my bucket list.“ He adds,  “I knew the experience would benefit my teaching and research; in fact, I am already bringing some of my experiences back into the classroom.”

Betancourt says, “Though I was not coming from a research-intensive university, I thought I had a good chance for the appointment. I have extensive professional experience. I understand working in a policy role. Prior to teaching at JMU, I worked in accounting policy roles at Freddie Mac and the Office of the Controller of the Currency.”  He adds, “It was definitely worth the experience; I’m happy I was able to enjoy this once-in-a-lifetime opportunity. I have a real appreciation for what the SEC does, now that I’ve worked within the organization. I didn’t appreciate it as much as an outsider. I was very impressed with how careful and deliberate the SEC was in thinking about the consequences of their decisions. The people I worked with were incredibly talented and devoted; the best minds in accounting.”

Oddly, Betancourt’s most memorable experience during his year at the SEC was not related to accounting policy making or even the day SEC Chairman Mary Jo White stopped by his office to greet him.  Instead, it came during the October 2013 government shutdown. He says, “During the shutdown the agency had reserve funds and stayed open. I’ll never forget commuting home by bike during those days and riding across the National Mall; it was deserted and empty of activity.  It was surreal; it looked like something out of a post-apocalyptic movie.”

CoB Dean Mary Gowan says, "This is a very prestigious appointment. As an academic fellow, Dr. Betancourt conducted accounting research in the area of accounting standard setting – his area of expertise.”  She adds, “He returned to JMU with new experiences, knowledge, and perspective after having spent a year working with SEC and Public Company Accounting Oversight Board staff members on a variety of topics. He is eager to share what he’s learned with his colleagues and students.”

Betancourt started working at JMU in 2003; he earned his Ph.D. from the University of Central Florida, his M.B.A. from the University of Maryland and his B.S. from Salisbury State. His professional interests include capital markets, accounting standard setting, and financial institutions.