SOX Center

Investors who got a midsummer haircut last week during the Dow’s 735-point drop from 14,000 probably aren’t singing Happy Birthday for the Sarbanes-Oxley Act, which is 5 years old today. But maybe they should be.
If you think last week’s sell-off was bad, recall the summer of 2002. Enron had imploded, WorldCom admitted to fabricating billions […]

Japanese insurer Millea Holdings Inc. (8766.T) said on Thursday it will voluntarily have its shares delisted from the U.S. Nasdaq market and stop reporting its earnings under U.S. accounting rules to save costs.
Millea, a holding company with both life and non-life insurance operations, also announced plans to buy back up to 7 million of its […]

Critics of the 2002 Sarbanes-Oxley act say the bill’s post-Enron/WorldCom accounting reforms have made U.S. capital markets less competitive with those overseas. It’s no surprise that one of its authors, former U.S. Rep. Michael Oxley, says that’s hardly the case. Oxley says recent refinements to the section of the act requiring companies to monitor internal […]

(Bloomberg) — The U.S. House of Representatives moved toward giving small companies an additional year to adhere to the Sarbanes-Oxley Act’s accounting rules, which are being revised by the Securities and Exchange Commission.
House lawmakers voted 267 to 154 to delay a deadline for companies with less than $75 million in publicly available shares to start […]

Roger Ehrenberg submits: I feared this day would come. And it’s here. No, not just the saber-rattling and moaning about how hedge fund and private equity-types are too rich, how hedge funds are increasing investor risks and debt buyers are accepting overly-liberal terms fueling the private equity juggernaut and the like.
But a newly-energized Democratic Congress […]

Commissioners of the government’s watchdog for Wall Street will face questions about their efforts to protect investors and oversee markets during a House hearing on Tuesday.
Members of the House Financial Services Committee will line up Tuesday afternoon to ask Securities and Exchange Commission Chairman Christopher Cox and the four other SEC commissioners about the agency’s […]

Two separate oversight bodies responsible for financial reporting and auditing rules under the Sarbanes-Oxley Act (SOX)–the Securities and Exchange Commission (SEC) and Public Company Accounting Oversight Board–took steps in late May to streamline and clarify the act’s requirements.
On May 23, the SEC approved new guidelines for interpreting section 404 of SOX, instructing companies to focus […]

Says Sarbanes-Oxley creates fear of litigation
A study of 4,000 U.S. companies shows the Sarbanes-Oxley corporate reform law has had a chilling effect on risk-taking as many companies seek to conserve cash instead of developing new products or services, a University of Pittsburgh researcher said yesterday.
U.S. companies significantly cut research and development spending and capital expenditures, […]

TOPIC: An annual study by Oversight Systems found approximately 75 percent of certified fraud examiners claimed institutional fraud is more common now than five years ago according to an article by Wall Street and Technology. Four out of five survey participants cited the pressure “to do whatever it takes to meet goals” as the most […]

SINGAPORE: Creative Technology, whose music players compete with the Apple iPod, said it planned to end trading of its shares on the Nasdaq Stock Market to cut costs incurred by U.S. financial reporting requirements.
The Singapore-based company plans to file notice to remove the listing of its shares from the U.S. exchange on or around July […]