ICBA Backs SEC Proposal to Ease SOX Reporting

Jul 25, 2019
ICBA expressed strong support for an SEC proposal to exempt more community banks from the auditor-attestation requirements of Section 404(b) of the Sarbanes-Oxley Act.

In a comment letter, ICBA said designating more community banks as accelerated filers will help them preserve capital without significantly affecting investor decision-making.

The proposal would exclude SEC filers with a public float of less than $700 million and with annual revenues of less than $100 million in the most recently completed fiscal year. Current rules exempt only SEC filers with a market cap of less than $75 million.

ICBA also said the SEC could go further specifically for community banks, which are already subject to extensive supervision and regulation.

ICBA cited its support for legislation sponsored by Sen. Mike Rounds (R-S.D.) that would exempt community banks with less than $5 billion in assets from both SOX 404(b) and FDIC annual reporting and accounting requirements.

Read ICBA Letter