Cox gives companies SOX reprieve

The SEC wants to give smaller companies more time to comply with section 404, Chairman Christopher Cox said this morning.
DEC 12, 2007
By  Bloomberg
The Securities and Exchange Commission wants to give smaller companies more time to comply with section 404 of the Sarbanes-Oxley corporate reform law, Chairman Christopher Cox said this morning. Section 404 of the act, passed in 2002, requires that businesses provide an auditor’s report on their internal controls and outlines management guidance standards. Audit reports are significantly more costly for smaller businesses, so the SEC has not yet required nearly 5,000 companies to comply with that section of the rule, Mr. Cox said. This is the fourth time the SEC has postponed compliance for businesses whose public float of less than $75 million. Mr. Cox said the SEC intends to propose an additional one-year delay. The SEC will conduct a cost-benefit study of the costs associated with complying with section 404 that will be finished in June, 2008, Mr. Cox said. Currently, small companies must comply with the management guidance rule by the end of this year and the auditing section by 2009.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave