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
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

How AI search aided scam from phony NFL player, fake financial advisor
How AI search aided scam from phony NFL player, fake financial advisor

Daejon Love and Taylor Chan's $1.3 million romance fraud scheme exposes how AI search engines can be manipulated by fabricated online identities

Schwab ordered to pay clients $1.34 million in crypto dispute involving elderly client
Schwab ordered to pay clients $1.34 million in crypto dispute involving elderly client

“It was a third party scam,” said the attorney representing the claimants.

RIA moves: Mercer adds to Atlanta presence with veteran advisor from Northern Trust
RIA moves: Mercer adds to Atlanta presence with veteran advisor from Northern Trust

Meanwhile, &Partners draws another Commonwealth practice, and Wealthcare welcomes a $550 million planning practice in the Northeast.

CogniCor adds wealthtech veterans to board in renewed RIA push
CogniCor adds wealthtech veterans to board in renewed RIA push

Palo Alto AI platform recruits RIA and fintech leaders as industry data show AI adoption reshaping advisor staffing.

Advisor moves: Merrill draws $1.2 billion UBS team in New Mexico
Advisor moves: Merrill draws $1.2 billion UBS team in New Mexico

Meanwhile, Raymond James, Wedbush, and LPL recruited veteran advisors from across Texas, North Carolina, and California.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income