Oxley Talks SOX in New Article

Rep. Michael G. Oxley is now famous for being one of the authors of the much-maligned Sarbanes-Oxley Act. In a new article, Oxley talks about the act, including what they did right – and what they didn’t.

In an article published on the law.com website, Oxley opens up to writer Janet L. Conley about the controversial act, and what he might have done differently when drafting the legislation. “Nobody ever passed a perfect piece of legislation,” Oxley admits in the article, “but this one has been quite a ride.”

The Republican Oxley told a group of experts last week that if he could change one thing about the law, he'd make it more flexible and less one-size-fits-all, especially in relation to small and mid-size public companies, Conley reports.

Small businesses have criticized Section 404 of the Act – the section that addresses internal controls – as being too expensive for them to implement. “I think it’s a legitimate criticism of the act and especially 404, that it's a one-size-fits-all solution,” Oxley said.

“It would be a shame,” he added, “if the law were to force these folks to go private and deny them access to capital they need to grow. ... And to the extent this complicates that, we need to take a look at it.”

However, Oxley warned that Congress rarely revisits major legislation, which could mean changes to Section 404 might not be forthcoming. Instead, the SEC could consider more flexible implementation, Conley says.