The
Commenting on the case, Cindy Fornelli, executive director of
From the perspective of the fund management industry, Fornelli said, "This should further instill confidence in the market, for investors and the capital markets" and the Supreme Court's upholding of Sarbanes-Oxley is a positive development since "investors value SOX and PCAOB's oversight function."
Arguing the case for the
CEI claims the ramifications of the case extend far beyond the investment mandate of the Free Enterprise Fund to how government officials and regulatory bodies, such as the PCAOB created under SOX, “are answerable to the American people” and make it easier for entrepreneurs and investors. The attorneys note that SOX, or “Sarbox,” made it difficult for a mass-market company like
Indeed,
“We suspect that many shareholders would choose some form of opt-out, and in so doing, would enable more growing companies to continue growing as independent firms, rather than being bought out by larger companies that can intentionally or unintentionally rob the firms of the entrepreneurial magic that made them successful in the first place,” Schramm said.
However, the two namesakes for Sarbanes-Oxley, Congressmen Paul S. Sarbanes and Michael G. Oxley, issued a joint statement applauding the high court's decision: "The PSAOB provides essential protectiosn to the more than half of American households that invest savings in securities. It ensures the integrity [and continuation] of public company audits and, thereby, the accuracy of financial reporting.
"The Board's essential protections of American investors will continue," Mssrs. Sarbanes and Oxley said.