The Securities and Exchange Commission said Wednesday that it has decided not to exempt smaller public companies from a key requirement of a 2002 anti-fraud law, resisting entreaties from business interests that have been complaining about the costs of compliance.
In a statement, the SEC said it will take a series of actions meant to improve the way the law works, "although ultimately all public companies will be required to comply."
At issue is a key part of the Sarbanes-Oxley law that arose from the 2002 corporate scandals: the requirement for companies to file reports on the strength of their internal financial controls and fix any problems.
An advisory committee appointed by the SEC formally proposed last month that the agency exempt smaller companies from the requirement, a move that would affect about 70 percent of all public companies in the U.S.
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