In a strongly worded response, submitted to the US Securities & Exchange Commission yesterday, FEE said it believed capital markets required ‘principles-based global solutions, and not unilateral imposed rules-base requirements’.
While in favour of the overall objective of restoring investor confidence in capital markets, FEE said Sarbanes-Oxley was ‘very much related to the US legal environment and can be seen as a reaction to mainly US financial reporting problems’.
It added: ‘For European companies and their auditors, many of the Sarbanes-Oxley Act measures, especially as regard their details are, in our opinion, unnecessary, disproportionate, burdensome, or even impossible to apply.’
Sarbanes-Oxley has forced some companies to reconsider listing in the US – one example being German sports car maker Porsche – while European regulators have raised concerns about the impact the laws will have on companies that are listed across the pond.
Recently, the SEC conceded to some countries concerns by proposing modifications to the recently established law.
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The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements