Is EU going to adopt Sarbanes Oxley? 377
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Hello to you all
I have been doing a bit of research lately on EU regulations comparable to SOXA,and i have a couple of major questions
Is it known whether EU is going to adopt SOXA or part of ?
Is EU going to form similar regulations of its own?
The regulations in the EU like the Financial Service Action Plan or regulations in the UK like Combined Code,in which sense differ from SOXA? Is it because SOXA is a law,when all others are simply regulations?
If anyone has a clear view on this issues, his/her help will be more than appreciated
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Is it known whether EU is going to adopt SOXA or part of ?
No. It would be unprecednted for EU countries to adopt US legislation.
Is EU going to form similar regulations of its own?
Yes, almost certainly.
The regulations in the EU like the Financial Service Action Plan or regulations in the UK like Combined Code,in which sense differ from SOXA? Is it because SOXA is a law,when all others are simply regulations?
The UK Combined Code is very similar to SOX, in that it covers almost allof the same principles, and predates it by a considerable time. The difference between the two is in two main areas:- enforcement - you’re probably not going to go to jail for not complying with the Combined Code
- documentation - SOX creates a more rigorous demand for evidencing your internal control and having it audited
FYI the Turnball Guidance which forms part of that Code has been accepted by the PCAOB as a suitable framework for manaegment to assess internal control for SOX 404
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Thanx a lot for the quick response and the answer.
But as it seems from today’s Financial Times, the EU is not going to form a consolidated code for corporate governance, and as it says on the article, it is going to leave all the regulation’s responsibility to the Member States.
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Oh well another good example of the EU knowing its priorities :roll:
Suits me as this means that only the UK will adopt any significant Corporate Governance legislation maintaining the reputation of its capital markets.
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Actually it doesn’t seem necessary. Even if you are a european not NYSE listed company. If you have more than 300 US Shareholders, which is somewhat difficult to avoid, you have to comply with 404.
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What???
I have worked with SOX for 2 years and I thought that I was an expert. I have never heard that a company with 300 shareholders has to be SOX compliant. If this is true, which I doubt, where can I find more information?
Regards
Guest
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I’m not 100% sure on this one.%0AI know that a Company cannot delist from the US if it has 300 shareholders - that’s an SEC rule - and therefore it is extremely difficult for an overseas company to delist to avoid SOX.%0AIf have also heard the same thing that SOX applies if a Company has more than 300 US shareholders, but I don’t see how that is enforceable i.e. where would management make it’s 404 assertion if it has no US filing? The following article makes the same claim.%0Atheregister.co.uk/2005/01/11/europeans_slam_sarbox/ See the following articles for further info about the deregistering issue:%0Acfo.com/article.cfm/3217608/c_3217674 knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature-and-id=1080 albuquerque.bizjournals.com/albuquerque/stories/2005/01/17/smallb2.html smartpros.com/x37359.xml
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Sorry Guys of causing any obstacles… :oops:
I mixed it up. The 300 US Shareholder issue applies if you want to delist from the NYSE as a foreign listed comp.
Sorry again…
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Is EU going to form similar regulations of its own?
Actually, there is a new Proposal of the Commission for a Directive on statutory audit of annual accounts and consolidated accounts, which will cover part of the topics dealt with in SOX.
After what I have read in a couple of newspapers, they also want to change the auditing standards to ‘assimilate’ EU standards more to US ones, but I am not sure about what exactly are they going to do…