SEC Adopts Final Rules Regarding Code Of Conduct For Senior Financial Officers
- Topics:
- Regulatory issues
- Tags:
- Akin Gump Strauss Hauer & Feld,
- Sarbanes-Oxley,
- Regulatory Compliance,
- Regulations,
- Policies And Procedures,
- Management,
- Leadership,
- Human Resources,
- Government,
- Financial Officer,
- ...
- Source:
- Akin Gump Strauss Hauer & Feld
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Overview: On January 23, 2003, the Securities and Exchange Commission (SEC) released final rules implementing Section 406 of the Sarbanes-Oxley Act of 2002 (the Act). In general, Section 406 requires the SEC to enact rules requiring public companies to disclose whether they have adopted codes of ethics for their respective senior financial officers and further directs the SEC to promulgate rules requiring issuers to disclose on Form 8-K whether such policies are ever waived or amended. Although the Sarbanes-Oxley Act does not go into great detail as to what the code of ethics for senior financial officers must contain, at a minimum the Act prescribes that it must address (i) honest and ethical conduct, (ii) full, fair, accurate, timely and understandable disclosure (iii) compliance with applicable government rules and regulations. The Act also states that the rules must require companies that have not adopted such a code of ethics to explain why they have not done so. As part of their recent campaigns to enhance corporate governance, the New York Stock Exchange (NYSE), The Nasdaq Stock Market (Nasdaq) and the American Stock Exchange (AMEX) also have proposed rules for listed companies requiring the adoption of corporate ethics policies.
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Format: PDF | Size: 924KB | Date: Feb 2003 | Pages: 4
