Regulators Concede Need To Seek State Approval Of Sox Requirements

A key state regulator has assured the president of the National Conference of State Legislators (NCOIL) that efforts to impose elements of the federal Sarbanes-Oxley corporate governance law on state insurance regulation will be done by state legislation or regulation after all.

In a letter to Texas State Rep. Craig Eiland, Douglas C. Stolte, chair of the NAIC-AICPA Working Group, said “it has never been the intention of the Working Group, nor do we believe that it would be appropriate, to automatically incorporate the proposed revisions to the Model Audit Rule by reference through the Annual Statement Instructions…the Working Group will recommend that the proposed revisions be done either by statute or regulation due to the significance of any proposed revisions.”

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