The Handbook of Municipal Bonds

CHAPTER 24

Sarbanes-Oxley and the Securities and Exchange Commission

Paul S. Maco Partner Vinson & Elkins LLP

 

 

 

On July 30, 2002, President Bush signed into law the Sarbanes-Oxley Act of 2002⁴⁸³ (the Act). The Act creates the Public Company Accounting Oversight Board (the Oversight Board), regulates analyst conflicts, contains provisions affecting corporate governance, disclosure practice, insider transactions and loans to executives, expands the remedies available to the Securities and Exchange Commission (SEC) for violations of the federal securities laws, establishes new types of criminal conduct and increases prior criminal penalties for violation of the law. Many scholars of securities regulation consider the Act the most significant change to the regulatory framework governing U.S. securities markets since enactment in the 1930s of the federal securities laws themselves.⁴⁸⁴ Provisions of the Act apply to both domestic and non-U.S. public issuers, but the core provisions of the Act do not apply to issuers of municipal securities. Whether directly applicable or not, the Act may, over time, have a profound effect upon practices in the municipal securities market.

Note: This chapter is intended for educational and informational purposes only and does not constitute legal advice or services. If legal advice is required, the services of a competent professional should be sought. These materials represent the views of and summaries by the author. They do not necessarily reflect ...