Friday, May 19, 2006

Rep. Gregory Meeks Holds Sarbanes-Oxley Listening Tour for Minority Business Owners, Announces Financial Services Diversity Resolution

Rep. Gregory W. Meeks (D-N.Y.) a member of the House Financial Services Committee, will meet with minority business owners and affected stakeholders on Monday, May 22, at 10:30 a.m. to discuss the Sarbanes-Oxley (SOX) compliance costs, which have been found to be far more than originally anticipated, particularly for smaller businesses.

"Without question, the Sarbanes-Oxley has achieved its goal in relation to improved corporate governance, particularly in relation to board responsibility, improving communications with shareholders, and soundness of internal controls," said Meeks. "However, SOX implementation has created significant cost to small cap companies in financial and human resources. I have heard of companies going from $400,000 for audit cost to over $1,000,000. The reality is the large cap companies can absorb the cost, but small cap companies cannot." Additionally, the cost of compliance with Section 404 is affecting capital formation in the United States. More companies are choosing to go private, stay private or list in overseas exchanges to avoid SOX compliance costs.

Meeks will also utilize the SOX listening event as a backdrop to unveil his Financial Services Diversity Resolution. The bill addresses diversity in one of America's most thriving industries, and draws attention to the low presence of minorities in the financial services industry, and minorities and women in upper level managerial positions. The Meeks' resolution encourages financial services institutions, both public and private, to adopt certain diversity initiatives including appointment of board members, career mentoring, partnerships and diversity in recruitment and training.

Rep. Gregory Meeks Holds Sarbanes-Oxley Listening Tour for Minority Business Owners, Announces Financial Services Diversity Resolution

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