In testimony before lawmakers, Securities and Exchange Commission chairman Christopher Cox defended the Sarbanes-Oxley Act, but sided with critics of the sweeping reform act who maintain that parts of the mandate need to be changed— in particular Section 404.
"There are no irreparable problems with Section 404 implementation," he told the House Committee on Financial Services, "although fixing the problems that have been identified will be challenging."
Critics have charged that meeting SOX 404 compliance places excessive burdens on companies in terms of capital and personnel resources — especially for the smaller filers.
Meanwhile, the groundswell to revamp the four-year-old act has gained momentum.
In November, the Committee on Capital Markets Regulation, a group co-chaired by former White House economic advisor Glenn Hubbard and Goldman Sachs president John Thornton, will submit its recommendations for changes to SOX.
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