TITLE: Panel's Mission: Easing Capital-Market Rules
REPORTER: Alan Murray
DATE: Sep 12, 2006
TOPICS: Accounting, Accounting Law, Regulation, Sarbanes-Oxley Act, Securities and Exchange Commission
SUMMARY: This article describes formation of a new commission, "The Committee
on Capital Markets Regulation," to address issues in the competitiveness of
U.S. financial markets in the wake of Sarbanes-Oxley and other laws and
regulations having similar impact. The article, and questions in this review,
address the political process for undertaking regulation as well as some
specific points on the impact of regulation on financial markets.
1.) Describe in general the impact of Sarbanes-Oxley on businesses in the U.S.
How has that law also impacted foreign issuers considering listing their stock
on U.S. stock exchanges?
That one is straightforward, covered in the article. Complying with Sarbanes-Oxley is costly; companies consider switching from publicly-traded to closely-held, to avoid those costs. Foreigh companies (who would need to comply with Sarbanes-Oxley in order to be listed on U.S. stock exchanges) decide not to list in the U.S., but elsewhere -- also to avoid those costs.
2.) What other regulations over U.S. listed stocks may impact the ability of
U.S. exchanges to compete for foreign issuers? Specifically describe one
regulation, state who is responsible for implementing it, and describe its
impact of U.S. exchanges' ability to compete.
Arg! I don't know. Internets hasn't been helpful either. Maybe I don't know what I'm looking for?Re-reading the article more carefully, I see the other prominent thing mentioned beside the sarbanes-Oxley, is class-action security lawsuits. Chinese particularly cite their fear of those...