NAM calls for changes to Sarbanes-Oxley legislation

Following the November 30 release of a study by the Committee on Capital Markets Regulation, assessing the degree to which U.S. public markets are losing ground to foreign and private markets, the causes of this decline, and its impact on the financial industry, the National Association of Manufacturers issued the following statement:

“We agree with the committee that while the Sarbanes-Oxley legislation made great strides in reforming corporate governance, portions of this legislation went too far,” said NAM president John Engler. “Based on today’s study, ‘Capital Markets Regulation and Its Effects on U.S. Competitiveness’, there are clear signs that global confidence in our capital markets has been diminished and there has been a decline in the competitiveness of the U.S. economy. While we still are in the process of reviewing the group’s findings, we are pleased that the panel recommended reforms to the Sarbanes-Oxley Act. For the sake of all public companies, notably America’s manufacturers, regulators should adopt a more principled and risk-based approach to regulation. Decision-makers at all levels, from the SEC to Congress, should consider this study as they look at reforming Sarbanes-Oxley regulations for public companies.”

The National Association of Manufacturers is the nation’s largest industrial trade association, representing small and large manufacturers in every industrial sector and in all 50 states. Headquartered in Washington, D.C., the NAM has 10 additional offices across the country. Visit www.nam.org for more information about manufacturing and the economy.