SEC to hear calls for Sarbox ‘fix’
Lobby groups demand changes to Sarbanes-Oxley Act
Business lobby groups will this week demand that the Securities &
Exchange Commission, the US’s chief financial regulator, either make changes
to or do away with the corporate reforms brought in after Enron.
On Wednesday this week, the SEC and the Public Company Accounting Oversight
Board will hold a meeting to hear company complaints that the costs of complying
with the law far outweigh any benefits.
The Sarbanes-Oxley law, approved by Congress in 2002, was designed to restore
investor confidence after a string of accounting scandals, but the mainly
Conservative lobby groups believe it is hurting America’s competitiveness.
Already the law is about to be challenging in a federal court while
Republicans in teh House of Representatives are expected to introduce a bill
this week that would roll back part of the law.
Accounting firms oppose major reforms to the law.
Executives from companies like Microsoft and General Electric are expected to
attend the meeting.