RegulationCorporate Governance‘Sarbox hurting US stock exchanges’

‘Sarbox hurting US stock exchanges’

American Stock Exchange chief criticises post-Enron rules

The corporate governance rules brought in after the collapse of Enron
have inhibited smaller companies from accessing US capital markets and reduced
the competitiveness of US stock exchanges, according to the chief executive of
the American Stock Exchange.

Writing in the FT, Neal Wolkoff, chairman and chief executive of the
American Stock Exchange, said while he was not in favour of dismantling the
Sarbanes-Oxley Act, he was ‘concerned about the effects of Sox on small
businesses’.

‘I see a growing trend of entrepreneurial companies deciding not to go public
or listed companies opting to delist because of the high costs of complying with
Section 404, which requires designing, documenting and auditing of financial
controls,’ Wolkoff said.

As a result, ‘many innovative companies are turning to foreign exchanges to
list. Before the implementation of Sox they would have automatically listed on a
US exchange’.

Related Articles

Corporate governance: staying ahead in accountancy

Corporate Governance Corporate governance: staying ahead in accountancy

3m Alia Shoaib, Reporter
One in 20 audit firms quit as market evolves

Audit One in 20 audit firms quit as market evolves

1y Kevin Reed, Writer
Colin: #EURef bankers a problem

Business Regulation Colin: #EURef bankers a problem

1y Taking Stock
PwC and Deloitte chiefs sign Remain letter

Business Regulation PwC and Deloitte chiefs sign Remain letter

1y Kevin Reed, Writer
Leader: Audit competition drives change, not necessarily quality

Accounting Firms Leader: Audit competition drives change, not necessarily quality

1y Kevin Reed, Writer
EU audit reform to open up £10bn market for firms

Accounting Firms EU audit reform to open up £10bn market for firms

1y Richard Crump, Writer
Best Practice: Saffery Champness managing partner Rob Elliott

Accounting Firms Best Practice: Saffery Champness managing partner Rob Elliott

2y Calum Fuller, Reporter
Standard Life Investments opposes EY's appointment as Shell auditors at AGM

Accounting Firms Standard Life Investments opposes EY's appointment as Shell auditors at AGM

2y Richard Crump, Writer