Markets participants are disappointed the Securities and
Exchange Commission (SEC) didn’t address section
404(b) of the Sarbanes-Oxley Act of 2002, which looks at
amendments to the accelerated filer and large accelerated filer
definitions, in its last open meeting in June.
The SEC did however vote in favour of amendments to smaller
reporting company (SRC) definitions, increasing the number of
companies that can qualify for existing scaled disclosure
Keith Higgins, chair of the securities & governance
Ropes & Gray, who was director of corporation finance
at the SEC when the original rules were proposed, said that the
outcome of the meeting was as expected, if perhaps slightly
But according to Anna Pinedo, partner at Mayer Brown, the
decision to not address the threshold that triggers the auditor
attestation of the SRC definitions was a disappointment. "I
assumed that the SEC took as long as it had...