Change in Compliance Dates for Sarbanes-Oxley 404

In a press release issued on March 2, 2005, the Securities and Exchange Commission announced that it has further extended the compliance dates for non-accelerated filers (i.e. companies that are not required to file their annual and quarterly reports on an accelerated basis) and for foreign private issuers regarding certain rule amendments that were adopted by the Commission in following with Section 404 of Sarbanes Oxley. These SEC rule amendments require that companies provide a report on the internal controls over financial reporting in addition to including an auditor's report in its annual report.

In February 2004, the SEC extended the Sarbanes-Oxley 404 compliance dates for all issuers, but in considering the specific challenges for non-accelerated filers and foreign private issuers, the Commission has granted an additional one year extension. The new compliance date for non-accelerated filers and foreign private issuers is for their first fiscal year ending on or after July 15, 2006.

Click here to view the March 2, 2005 Press Release.

Click here to view the 2005 Final SEC Rule that grants a compliance date extension to non-accelerated filers and foreign private issuers regarding internal control over financial reporting requirements.

Click here to view the 2004 Final SEC Rule that grants a compliance date extension to all issuers regarding internal control over financial reporting requirements.

Click here to view the 2003 SEC Rule requiring companies, other than registered investment companies, to include a report of management on the company's internal control over financial reporting in their annual reports.

U.S. Senate Hearing on the Securities Industry

On March 9, 2005, SEC Chairman William Donaldson will testify before the U.S. Senate Committee on Banking, Housing and Urban Affairs on the state of the securities industry. The staff of the AMF Senior Executives Group will monitor developments and report on salient items that relate to the business of asset management firms.

NOTE: This Weekly Report on Proposed Reforms Affecting Asset Managers is a service of the Technology, Operations and Asset Manager Relations Department of The Bond Market Association. We encourage your input as this communication is designed to promote dialogue among members of the Forum and the Association. Please feel free to contact Joseph Sack, Executive Director of the Senior Executives Group of The Asset Managers Forum or Douglas Taggart or Elisa Nuottajarvi of the staff of The Bond Market Association.