Friday, October 08, 2004

SEC Speech: The Themes of Sarbanes-Oxley as Reflected in the Commission's Enforcement Program: September 20, 2004 (Stephen M. Cutler)

I'll come back to those themes at greater length, but at the outset, it's worth noting there has been a lot of debate, particularly in recent months, about the efficacy of the Sarbanes-Oxley Act: Even before its requirements have become fully effective, some have begun to question whether the burdens it imposes are justified. Was such a tectonic shift in our regulatory landscape really needed? Was Sarbanes-Oxley wise policy or was it a politically-driven overreaction to the scandals that gave rise to it? For what it's worth, I come down on the side of the legislation. As memories of Enron, WorldCom, Tyco, Adelphia, HealthSouth and other examples of appalling corporate behavior begin to fade, perhaps it shouldn't come as a surprise that the benefits of Sarbanes-Oxley would be heavily discounted and that the critics would focus almost exclusively on the burdens of its requirements. While I'd be the first to acknowledge that the legislation's costs are not insignificant, I also think it would be a profound mistake to roll back or dismantle the statute's central dictates - particularly before we've had the opportunity to see them at work. And of course, many of the compliance costs imposed by the statute are likely to be higher in the first year or two than they'll ultimately be down the road. In the meantime, I can assure you, the Commission has been, and will continue to be, sensitive to the costs imposed by Sarbanes-Oxley as it implements the Act's provisions.

SEC Speech: The Themes of Sarbanes-Oxley as Reflected in the Commission's Enforcement Program: September 20, 2004 (Stephen M. Cutler)

Send to a friend:

0 Comments: