The U.S. Securities and Exchange Commission issued a concept release focusing on internal control reporting requirements under the Sarbanes-Oxley Act of 2002. According to one trade group representative, the release could conceivably be used to make a case against adopting amended financial reporting changes adopted by the National Association of Insurance Commissioners.
The SEC concept release (No. 34-54122) was issued on July 11 to see if there is support from the public for additional guidance regarding compliance with SOX, in particular, Section 404 internal control reporting requirements.
The decision to issue the concept release was in part due to earlier comment from smaller companies requesting more guidance to meet these requirements cost effectively. The SEC noted the concept release did not necessarily mean there was dissatisfaction with the current requirements but rather reflected a commitment to make requirements “scalable” for companies of all sizes.