NYSE Head Urges Rollback of SOX Provisions

Chris Gaetano
Published Date:
Jul 19, 2017
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The head of the New York Stock Exchange, alongside other prominent Wall Street officials, urged Congress to ease up on the many mandatory reporting requirements public companies face, such as the internal control rule implemented as part of the Sarbanes-Oxley Act, according to Bloomberg. The officials, speaking during a Congressional hearing about SOX and other corporate governance rules, said that such regulations have been discouraging the formation of new IPOs, which in turn limits the options for investors. With companies finding it more and more difficult to go public, it was argued that it's more attractive today to simply stay private and turn to venture capital for funding, which in turn would limit investment choices. 

While such arguments are hardly new, Reuters noted that with a new SEC head who, himself, has voiced similar complaints, they have gained a new resonance before a much more receptive audience. 

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