The Office of Advocacy today praised Securities and Exchange (SEC) Commissioners Paul Atkins and Kathleen Casey for their willingness to reconsider the SEC decision not to extend the deadline for small public firm compliance with section 404 of the Sarbanes-Oxley Act. Advocacy wrote to the commissioners in the wake of the SEC’s decision not to grant postponement of deadlines for public firms with less than $75 million in market value.
In the letter, Chief Counsel for Advocacy Thomas M. Sullivan asked the SEC to revisit the issue of compliance deadline extensions for smaller public firms. This request mirrors that of recent letters to the SEC by Senators John Kerry (D-Mass.), Chairman of the U.S. Senate Committee on Small Business & Entrepreneurship, and Olympia Snowe (R-Maine), the Ranking Member.
In April, Sullivan’s congressional testimony noted, “There is a compelling record demonstrating that the costs of complying with Section 404 are large and disproportionately high for small public companies. . . Advocacy believes that the excessive cost of Section 404 internal controls reporting may restrict a new generation of small innovative companies from seeking capital in the U.S. capital markets.”
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