FOR IMMEDIATE RELEASE
ICBA Applauds Reps. Oxley and Baker’s Support for SEC Authority
Washington, D.C. (March 3, 2006)—The Independent Community Bankers of America (ICBA) commended today House Financial Services Chairman Michael G. Oxley (R-Ohio) and Capital Markets Subcommittee Chairman Richard H. Baker (R-La.) for their letter in support of the Securities and Exchange Commission's authority to implement the recommendations of the SEC Advisory Committee on Smaller Public Companies.
"ICBA hopes that Chairman Oxley and Chairman Baker's letter to SEC Chairman Cox will help convince the Commission that it should adopt the recommendations of the SEC Advisory Committee," said Christopher Cole, regulatory counsel to ICBA. "If adopted by the SEC, the committee's recommendations to exempt micro-cap and small-cap companies from Section 404 of the Sarbanes-Oxley Act will benefit hundreds of publicly held community banks and holding companies that are struggling with steep and growing compliance costs associated with the law's regulations."
The Draft Final Report adopted by the SEC Advisory Committee recommends:
- Exempting companies with market capital of less than $125 million and revenues no greater than $125 million completely from Section 404;
- Exempting smaller public companies with market capital of between $125 million to $750 million and revenues no greater than $250 million from the internal control attestation requirements of Section 404;
- Incorporating the scaled disclosure and financial statement accommodations currently available to small business issuers under Regulation S-B into Regulations S-K and S-X, and make those accommodations available to all micro-cap companies and small-cap companies;
- Adopting a new private offering exemption for small companies that does not prohibit general solicitation and advertising for transactions with certain purchasers; and
- Forming a task force of SEC and bank regulatory officials to discuss ways to reduce inefficiencies associated with bank and bank holding company filings.