FEDERALhearing transcript

Congressional Hearing on the Costs of Public Company Compliance

Original title: THE COST OF BEING A PUBLIC COMPANY IN LIGHT OF SARBANES OXLEY AND THE FEDERALIZATION OF CORPORATE GOVERNANCE

January 1, 2018

corporate governance Sarbanes-Oxley Act securities regulation capital markets public company compliance

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The Frame

What this does

This hearing explores whether current federal regulations for public companies create excessive costs that discourage businesses from going public, which directly impacts investment opportunities and the regulatory environment for U.S. capital markets.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Publicly traded companies

These entities are subject to the federal corporate governance and reporting requirements discussed in the hearing.

Investors

Changes to corporate governance regulations may alter the information available to investors and the costs associated with public market participation.

What changed

Last recorded activity January 1, 2018.

What's next

Next step not available in the current record.

Summary

The House Subcommittee on Capital Markets, Securities, and Investment held a hearing on July 18, 2017, to examine the financial and regulatory burdens placed on public companies by the and federal corporate governance standards. The session featured testimony from industry leaders, legal experts, and policy advocates regarding the impact of these regulations on market competitiveness.

Key Facts

The hearing took place on July 18, 2017, in the Rayburn House Office Building.
The primary focus was the impact of the Sarbanes-Oxley Act on the costs of operating as a public company.
Witnesses included representatives from the NYSE, the U.S. Chamber of Commerce, academia, and the private sector.
The hearing record includes prepared statements from five expert witnesses and additional materials from the Depository Trust & Clearing Corporation and Institutional Shareholder Services Inc.

Why It Matters

Frequently Asked Questions

What is the purpose of this hearing?

To review the costs and regulatory requirements imposed on public companies by federal law, specifically the .

Who testified at this hearing?

Experts from the New York Stock Exchange, the U.S. Chamber of Commerce, the Competitive Enterprise Institute, and the University of Denver Sturm College of Law, along with a finance executive from aTyr Pharma, Inc.

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Focus on Regulatory Burden

The hearing highlights a legislative interest in 2017 in re-evaluating post-Enron era regulations to potentially reduce compliance costs for public companies.

Subcommittee on Capital Markets, Securities, and Investment

Connected Entities

personJohn Berlau“Senior Fellow at the Competitive Enterprise Institute.”Map →

personJohn Blake“Senior Vice President of Finance at aTyr Pharma, Inc.”Map →

personBill Huizenga“Chairman of the subcommittee.”Map →

organizationSubcommittee on Capital Markets, Securities, and Investment“The congressional body conducting the hearing.”Map →

personThomas Quaadman“Executive Vice President, Center for Capital Markets Competitiveness, U.S. Chamb”Map →

personThomas W. Farley“President of the New York Stock Exchange (NYSE).”Map →

personJ. Robert Brown, Jr.“Professor of Corporate Governance at University of Denver.”Map →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100

Significance60
How much this matters to a regular citizen
Controversy40
Intensity of disagreement among stakeholders
Entertainment10
Compellingness for a non-policy-wonk reader
Buzz15
Current news / social attention level

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