This weekend, the deadline kicked in for overseas companies listed on US exchanges to comply with Sarbanes-Oxley. And the response from European firms has been panic, reports Forbes. Some 17 per cent say they would consider delisting and less than half think the benefits would outweigh the costs.

But the issue reflects a far deeper problem.

The increasing reach of Sarbanes-Oxley, combined with the political storm that's broken out in Britain over the extradition of three NatWest bankers in connection with Enron has put relationships between the business communities in Britain and America under strain, reports the Sunday Times.

Concerns are being raised about long-arm jurisdiction by American authorities with critics claiming that America has positioned itself as the world's corporate sheriff.

Whatever the merits of these claims, it's another sign that in a globalised economy, Sarbanes-Oxley and US corporate regulations have implications that extend well beyond the shores of the US.