Explore BrainMass

Foreign countries foreign issuers and the Sarbanes Oxley Act

Foreign countries tend to have less stringent laws than in the US for regulating ethics and standards. How does the Sarbanes Oxley Act affect foreign corporations, if at all? Discuss, in thoughtful detail, why these companies should or should not be entitled to be exempt from this rule?

Solution Preview

Sarbanes Oxley Act of 2002 (SOX) applies to firms that want to issue their securities traded publicly on the US markets (issuers). Specifically, SOX applies to issuers whose securities are listed on a major US exchange held by 500 or more record holders worldwide or 300 or more record holders in the US, and those who have filed registration statements for public offerings in the US. So, basically, if you want to gain access to the premier capital markets on the planet, you have to submit to the US regulatory requirements.

While foreign corporations must comply with the entire act, ...

Solution Summary

Your discussion is 316 words and two references and includes two examples of exemptions under Sarbanes Oxley Act of 2002 for non-US issuers.