Sarbanes-Oxley helps LSE campaign

Link: Lawyers push for Sarbanes-Oxley exemptions

The LSE is targeting companies that had plans to list in New York, but changed their minds, primarily due to the new requirements imposed on foreign-based companies that have a listing in the US.

These companies include German sports carmaker Porsche, Japanese brokerage Daiwa Securities and photographic film manufacturer Fuji Photo Film.

In addition, Bermuda-domiciled reinsurance broker Benfield Group said in November it would float in London rather than New York early this year due to fears following the demise of Enron and WorldCom.

LSE chairman Don Cruickshank has attacked the Sarbanes-Oxley law, introduced at the end of last year, for its extra-territorial features – the act forces directors of foreign firms listed in the US to take personal responsibility for accounts they file or face criminal prosecution.

He also defended the UK’s principles-based approach to accounting legislation, as opposed to the rules-based approach adopted by the US.

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