Sarbanes-Oxley Has Not Put US at Competitive Disadvantage, Says Act Co-Author in New Gartner Podcast

Hon. Michael Oxley Interviewed by Gartner Analysts to Mark Fifth Anniversary of SOX Ac

EGHAM, UK, August 21, 2007 — The introduction of the Sarbanes-Oxley Act in 2002 has not put the United States (US) at a competitive disadvantage with its European counterparts, according to Michael Oxley, former US Congressman and co-author of the act, commonly known as SOX. 

In a podcast interview with Gartner Inc. analysts Bruce Bond and Vincent Oliva to mark the fifth anniversary of the introduction of the act, Mr Oxley said that although there is evidence that some European financial markets are becoming increasingly attractive, the US is still regarded as the safest and fairest of international markets with the highest standards.

Mr Oxley, currently vice chairman of the NASDAQ stock exchange, also said that since the introduction of SOX in the US, many countries, both developed and developing, have moved towards higher standards of corporate governance and listing requirements. The predicted ‘race towards the bottom’ that was widely predicted after the New York Stock Exchange and NASDAQ tightened their listing standards has failed to materialise. 

“Frankly it has been mostly the opposite of what many predicted,” said Mr Oxley.  “Other countries have stepped up and understood how important it is to have these kinds of standards and I would expect that this will continue apace and continue to pay great rewards.”

When asked whether he thought that SOX would stifle innovation in the US on a long-term basis by limiting the ability of smaller, more innovative companies to access capital markets, Mr Oxley said that regulations would be continually reviewed to ensure that this would not happen.  He cited the example where NASDAQ has developed a market for 144a transactions in which a company can access capital with qualified investors without registering with the Securities and Exchange Commission and without complying with Sarbanes Oxley. 

Mr Oxley will deliver the keynote address at the Gartner Financial Services Technology Summit, taking place 27-29 August at the New York City Marriott Marquis in New York City.  Additional information is available at www.gartner.com/us/fstechsummit.

The podcast with Mr Oxley is available on Gartner’s website at http://www.gartner.com/it/products/podcasting/asset_137461_2616.jsp

Contacts:


Christy Pettey
Gartner
+1 408 468 8312
christy.pettey@gartner.com

Holly Stevens
Gartner
+44 0 1784 267412
holly.stevens@gartner.com


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