SEC Gives Small Public Companies Extension On Securities Law

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The Securities and Exchange Commission will give the smallest public companies extra time to comply with the final portion of Sarbanes-Oxley.

Such companies must now begin complying within nine months with a provision in the law, known as Section 404, requiring them to report on the effectiveness of their internal controls. Previously, the companies were to begin complying by Dec. 15. The extension will apply to companies with a public float below $75 million.

The reprieve comes after pressure from Capitol Hill to delay the new reporting requirements. The SEC said it decided on the extension after issuing a new study on the compliance costs of the change, which it indicated the smallest companies would need time to review.

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UPDATE: SEC Gives Small Public Cos Extension On Securities Law - WSJ.com