US prepares to lighten Sarbox burden

The US Securities and Exchange Commission has moved to address the loss of company listings in the country by attempting to ease the burden of Sarbox on foreign groups.

The SEC is proposing that international companies listing in the US should be exempted from the onerous rules for a period of one year.

The proposal is part of a package of measures aimed at easing the burden of Sarbanes-Oxley Section 404 for foreign and smaller businesses, the FT reports.

'Our goal here is to make it easier for foreign issuers to do IPOs in the US,' said John White, director of the SEC's division of corporation finance. 'They will still ultimately have to comply but won't have to worry about Section 404 compliance as they worry about their IPO.'