Chamber Welcomes SEC and PCAOB SOX Re-Write

Calls for Delay in Small Business Application

WASHINGTON, DC—The U.S. Chamber of Commerce praised the Securities and Exchange commission (SEC) and Public Company Accounting Oversight Board (PCAOB) for major revisions to the implementing rules of Sarbanes-Oxley Section 404.

"This major re-write is a clear step forward and recognizes how seriously off-track Section 404 implementation has become," said Michael Ryan, senior vice president and executive director of the Chamber's Center for Capital Markets Competitiveness.

Companies have had to spend too much time and resources identifying, testing, and documenting non-material transactions and the accountants have been second guessed by regulators and the trial lawyers for doing too little or too much. The result is a system that does not work for companies, investors, and auditors.

"We need to ensure that the problems with Section 404 have been fixed and to be prepared to make additional changes if the new rules don't work as intended," said Ryan. "We encourage the Commission to further delay compliance for smaller businesses until the new guidance has been adopted and tested for a full-year by larger companies."

The Chamber's Center for Capital Markets Competitiveness was established to advance legislative, regulatory, and legal initiatives designed to strengthen the competitiveness of U.S. capital markets. The Chamber continues to advocate for other needed reforms that will keep America's markets the most transparent, innovative, and vibrant in the world.

The U.S. Chamber of Commerce is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

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