Sarbanes-Oxley 'must be rationalised' ...

Sarbanes-Oxley needs to be "rationalised" if small and medium-sized US firms are to compete with those in London, Hong Kong and other countries, an expert has stated.Duncan Niederauer, chief executive of NYSE Euronext, told delegates at a National Press Club event that the current set-up may put smaller firms off listing in the US. Read original article.

Previously, the US has been an attractive country for firms to list but a combination of demanding rules and the increased threat of litigation has encouraged businesses to consider other places.He asserted that "when a place like London shows up and says 'we are reputable, sure the US is too, but we are not going to put you through nearly what they are going to put you through to go public over there'", it is inevitable that companies will "vote with their feet".

Reuters reports that as well as Sarbanes-Oxley considerations, Mr Niederauer believes businesses are put off the US because it still uses its own generally accepted accounting principles rather than the international financial reporting standards (IFRS).