Private Equity Must Improve Governance -Coller Capital

Private equity firms risk triggering burdensome regulations in the vein of the U.S.'s Sarbanes-Oxley corporate-reform legislation if governance standards aren't improved, Jeremy Coller, chief executive of Coller Capital, warned Tuesday.

The Sarbanes-Oxley Act, also known as SOX, was introduced into law in 2002 in the wake of a series of high-profile corporate scandals, such as the collapse of Enron Corp. (ENE) and WorldCom Inc. - now MCI Inc. (MCIP). The legislation aims to boost investor confidence in the fairness of financial markets by requiring stricter financial reporting and corporate governance standards, but the law has also resulted in significant compliance costs for publicly traded companies.

See full Article.