FEI Urges SEC To Delay Small Business Compliance Date

In a letter submitted to the Securities and Exchange Commission (SEC), Financial Executives International (FEI) urged the SEC to delay for smaller companies the compliance date of Section 404 of the Sarbanes-Oxley Act.

The letter, sent on August 31, was signed by Rick Brounstein, chairman of FEI's Small Public Company Task Force, and was in response to the SEC's deadline requesting public input on smaller public companies. Read the complete comment letter.

FEI Statement: FEI released a statement to the press on September 19. Read the press release.

FEI Survey: In a related activity, Financial Executives Research Foundation (FERF) published "FEI Survey Results: Internal Control over Financial Reporting Issues Affecting Small Public and Private Companies." The survey found that over two-thirds of the small public company respondents indicated that they would have difficulty meeting the final phase-in of the SEC's accelerated filing deadlines. The survey also reports on the impact complying with Section 404 is having on small public companies' business decisions. Read the report.

SEC Advisory Committee Meeting: The SEC Advisory Committee on Smaller Public Companies (the SEC Advisory Committee) and its Forum on Small Business Capital Formation is hosting a joint meeting in San Francisco on September 19 and 20.

Access the detailed agenda or printable agenda .

SEC Open Commission Meeting: Following the SEC Advisory Committee meeting in San Francisco, the SEC will hold an open commission meeting at its Washington, D.C. headquarters on September 21. One subject under discussion will be a potential delay in the Section 404 reporting requirements for nonaccelerated filers. Another subject is a potential amendment to the final phase-in of the accelerated filing deadlines for Form 10-K and Form 10-Q. Details of the SEC's advance announcement of the September 21 meeting are available here.

Prepared Sept. 19, 2005 by Serena Dávila, (sdavila@fei.org), Director, Private Companies and the Financial Executives Research Foundation (FERF). This summary does not represent FEI opinion, unless specifically noted above.