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SEC looks again at Sarbanes-Oxley rules

SEC looks again at Sarbanes-Oxley rules

by Rick Turoczy on December 16, 2004

US regulators are to consider how they can write specific rules for smaller public companies following a wave of complaints about the costs associated with the Sarbanes-Oxley legislation.

The Securities and Exchange Commission on Thursday announced the establishment of a taskforce that will make recommendations on how the SEC could write rules that differentiate between big and smaller listed companies.

The intensive drive to reduce red tape for smaller companies will focus on whether they should abide by distinct rules in four areas. These are corporate governance, financial reporting, internal controls and stock offerings.

The SEC has produced many rules to implement the 2002 Sarbanes-Oxley law on corporate governance and accounting, which was drawn up after the Enron and WorldCom scandals and makes no distinction between big and smaller companies.

The most expensive provision is section 404 of the legislation, and its stipulation that companies document and test their internal controls against fraud.

SEC looks again at Sarbanes-Oxley rules

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