BusinessCompany NewsSEC proposals won’t help European companies

SEC proposals won’t help European companies

New rules on deregistration will not aid those who want to take advantage

Proposals aimed at making it easier for international companies to escape the
regulatory requirements of a US listing do not go far enough for many businesses
in Europe.

The Securities and Exchange Commission responded to calls from those trapped
by its registration rules by proposing a change in December that would enable
greater numbers of companies to escape the requirements of the Sarbanes-Oxley
Act, should they wish. However, the Financial Times reports that a coalition of
leading European business associations will tell the regulator that the changes
will make little difference to the number of companies able to deregister.

Currently, a non-US company can only deregister from the SEC if it has less
than 300 US-based shareholders. The suggested change would mean companies with
less than 5% of its shares held by US investors could exit the American market.
This rises to 10% for larger companies as long as this shareholding accounts for
less than 5% of daily trade volumes.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor