Christopher Cox, chairman of the Securities and Exchange Commission, yesterday brushed aside suggestions that the Sarbanes-Oxley law needed to be revised, saying that its most contentious provision was "benign" but conceding its implementation must be improved.
His comments, in an interview with the Financial Times, came as the Treasury secretary Hank Paulson - without referring to Sarbox directly - said that "often the pendulum swings too far" when it came to "corrective measures" to deal with corporate scandals.
Sarbox was enacted in 2002 in the wake of the Enron and WorldCom scandals.
Mr Cox defended Sarbox, in particular its Section 404 provision.
This requires top executives to sign off on detailed internal controls and have those approvals checked by outside auditors.
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