The US Chamber of Commerce might have come out with its plan to water down Sarbanes-Oxley but Securities and Exchange Commission chairman Christopher Cox has told them they're dreaming.
In his speech delivered at their summit, Cox has said the only thing that might need changing is the way the law is implemented. As far as he's concerned, SOX remains in place.
"Despite the recommendation in your report, and in the Schumer-Bloomberg study, that Congress amend the sarbanes-oxley act, I want to state clearly this morning that I disagree,'' Cox said. "While of course it's up to the Congress to determine its legislative priorities, both the House and the Senate have formally asked my advice on this point, in hearings on the subject of Sarbanes-Oxley, and I have repeatedly given it. We don't need to change the law, we need to change the way the law is implemented. It is the implementation of the law that has caused the excessive burden, not the law itself."
True, Section 404 might be in the words of Cox "a handy whipping boy", but as he pointed out, it's already being overhauled so what's the problem?
And there is no shortage of people pointing to the Act's strengths.
As The Economist says, some companies listing in London and Hong Kong have been unable or unwilling to meet the listing requirements of American exchanges. The result: America's regulatory requirements generate a share-price premium over other markets.
Still, I don't expect this will stop people bagging SOX. This debate will drag on and on and on.
The Economist puts it best: "Bob Steel, a treasury under-secretary, accepts that on some issues the talking is likely to go on for years. Which leaves plenty of time for more conferences, more reports, and more slices and pulls."
no comment untill now