January 26, 2005
Delay on Section 404 Being Considered for Foreign Filers
It is a tricky question for the SEC - do we have standards for our markets or not? We do not want to have many companies delist from our exchanges, but the fact is that the internal control work continues to highlight issues with how companies conduct business - not necessarily fraud but inadequate controls, nonetheless. One would be foolish to believe that only American companies would suffer from such problems. We all know fraud can be found in every country. So let's try to help European companies, but they have accessed US capital markets, so some rules must apply. A level playing field is important for fairness.
An excerpt on this development is here:
"The SEC remains committed to a level playing field for all its issuers, foreign and domestic alike," he said.
"But we recognize that cross-border listings frequently entail issuers having to navigate duplicative or even contradictory regulations in different jurisdictions. While the SEC is unwilling to compromise where investor protections are concerned, some duplicative or contradictory regulations can compromise those protections and place an unnecessary burden on issuers, firms and investors."
Donaldson said the SEC was seeking to be responsive to complaints, especially from European firms, about problems arising from the Sarbanes-Oxley requirements of special audits starting in 2005.
"To address these burdens, I have asked the staff of the Commission to consider whether to recommend that we delay the effective date of the internal control on financial reporting requirements for non-US companies," he said. " For the complete article, click here.
To learn more about how your company can rapidly and effectively comply with Sarbanes-Oxley, see www.issuescentral.com and find out more about Sarbanes-Oxley Compliance Playbook(tm).
An excerpt on this development is here:
"The SEC remains committed to a level playing field for all its issuers, foreign and domestic alike," he said.
"But we recognize that cross-border listings frequently entail issuers having to navigate duplicative or even contradictory regulations in different jurisdictions. While the SEC is unwilling to compromise where investor protections are concerned, some duplicative or contradictory regulations can compromise those protections and place an unnecessary burden on issuers, firms and investors."
Donaldson said the SEC was seeking to be responsive to complaints, especially from European firms, about problems arising from the Sarbanes-Oxley requirements of special audits starting in 2005.
"To address these burdens, I have asked the staff of the Commission to consider whether to recommend that we delay the effective date of the internal control on financial reporting requirements for non-US companies," he said. " For the complete article, click here.
To learn more about how your company can rapidly and effectively comply with Sarbanes-Oxley, see www.issuescentral.com and find out more about Sarbanes-Oxley Compliance Playbook(tm).
