Extra year for dual listed companies over S404
US filers now have until 15 July 2006 to meet internal control requirements.
The US Securities and Exchange Commission has confirmed that it is giving non-US companies an extra year to comply with the internal control requirements of the Sarbanes-Oxley Act.
UK companies that also have a listing in the US will now have until the financial year ending on or after 15 July 2006 to comply with the controversial Section 404 on internal controls. The previously stated deadline had bee for 15 July 2005.
‘Given the burdens in designing and implementing Section 404 compliance for smaller and non-US compaines, this extension strikes the right balance,’ said SEC corporation finance director Alan Beller. ‘Companies should use the extension not to delay but to improve the quality of their efforts.’