Title 15 — Commerce and Trade
Chapter 98 — Public Company Accounting Reform and Corporate Responsibility
§ 7266. Enhanced review of periodic disclosures by issuers
Statutory text
Regular and systematic review
The Commission shall review disclosures made by issuers reporting under section 78m(a) of this title (including reports filed on Form 10–K), and which have a class of securities listed on a national securities exchange or traded on an automated quotation facility of a national securities association, on a regular and systematic basis for the protection of investors. Such review shall include a review of an issuer’s financial statement.
Review criteria
For purposes of scheduling the reviews required by subsection (a), the Commission shall consider, among other factors—
issuers that have issued material restatements of financial results;
issuers that experience significant volatility in their stock price as compared to other issuers;
issuers with the largest market capitalization;
emerging companies with disparities in price to earning ratios;
issuers whose operations significantly affect any material sector of the economy; and
any other factors that the Commission may consider relevant.
Minimum review period
In no event shall an issuer required to file reports under section 78m(a) or 78o(d) of this title be reviewed under this section less frequently than once every 3 years.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Sarbanes-Oxley Act of 2002
Pub. L. 107–204 title IV § 408 · 116 Stat. 745
Enacted · 15 U.S.C. § 7266
(Pub. L. 107–204, title IV, § 408, July 30, 2002, 116 Stat. 790.)
Source evidence
Code source credit
(Pub. L. 107–204, title IV, § 408, July 30, 2002, 116 Stat. 790.)Enacted provision · exact public law section
SEC. 408. ENHANCED REVIEW OF PERIODIC DISCLOSURES BY ISSUERS. (a) Regular and Systematic Review.— The Commission shall review disclosures made by issuers reporting under section 13(a) of the Securities Exchange Act of 1934 (including reports filed on Form 10-K), and which have a class of securities listed on a national securities exchange or traded on an automated quotation facility of a national securities association, on a regular and systematic basis for the protection of investors. Such review shall include a review of an issuer’s financial statement. (b) Review Criteria.— For purposes of scheduling the reviews required by subsection (a), the Commission shall consider, among other factors— (1) issuers that have issued material restatements of financial results; (2) issuers that experience significant volatility in their stock price as compared to other issuers; (3) issuers with the largest market capitalization; (4) emerging companies with disparities in price to earning ratios; (5) issuers whose operations significantly affect any material sector of the economy; and (6) any other factors that the Commission may consider relevant. (c) Minimum Review Period.— In no event shall an issuer required to file reports under section 13(a) or 15(d) of the Securities Exchange Act of 1934 be reviewed under this section less frequently than once every 3 years.
1 of 1 references resolved to an enrolled provision