As public companies wait to see what action, if any, the Securities and Exchange Commission will take on recommendations proposed by its Advisory Committee on Smaller Public Companies, SEC Chairman Christopher Cox told lawmakers the agency’s preference is to find a way to make the controversial internal controls provisions of Section 404 work rather than to grant exemptions wholesale to smaller public companies.
Cox, who testified before the Senate Committee on Banking, Housing, and Urban Affairs last week, told the panel, “It’s not a question of whether to apply it [404], but how,” according to published reports.
