CBI Chief Wants British Companies Exempted From Sarbanes-Oxley

by Robin Pilgrim, LawAndTax-News.com, London

13 May 2003

The Confederation of British Industry (CBI) has spoken out against provisions contained within the US Sarbanes-Oxley Act which require UK companies which are listed in the United States to submit to the scrutiny of the Securities and Exchange Commission (SEC).

According to reports, director general of the CBI, Digby Jones last week flew to the United States to assess the mood there with regard to the corporate governance legislation. He is calling for firms which have a dual listing in the UK and the US to be exempted from the need to comply with the terms of the act.

'There is a recognition in the US that the Sarbanes-Oxley Act has gone too far,' he revealed, continuing:

'There are over one hundred companies in the UK listed in the US and we are trying to make clear to the US that if we have a company that complies with the Combined Code in Britain, then please understand that is good enough.'

He added that: 'We are not getting a 100% reception but a warm reception. We will see what we can do. It would open up their markets to capital raising.'

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