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Hensarling releases revised Financial CHOICE Act

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Apr 19, 2017

On April 19, 2017, the House Financial Services Committee Chair Jeb Hensarling (R-Texas) released a revised version of his Financial CHOICE Act. The bill would revise or repeal much of the Dodd-Frank Act.

Sections of the bill that are of particular relevance for the public company audit profession include:

  • Sec. 411 which would exempt emerging growth companies (EGCs) from having to use XBRL for financial statements and other periodic reporting required to be filed with the SEC under the securities laws. Issuers with total annual gross revenues of less than $250 million would be temporarily exempt.
  • Sec. 441 which would amend Section 404 of the Sarbanes-Oxley Act to temporarily exempt EGCs and low-revenue issuers under certain conditions.
  • Sec. 482 which would require proxy advisory firms to register with the SEC and to file, at intervals determined by the SEC, such financial statements, certified (if required by the SEC) by an independent public auditor, as the SEC may prescribe as necessary or appropriate in the public interest or for the protection of investors.
  • Sec. 832 which would require the PCAOB to make available any information requested by the House Financial Services Committee or Senate Banking Committee. Confidential or privileged information would remain confidential and privileged.
  • Sec. 833 which would abolish the PCAOB’s Investor Advisory Group.
  • Sec. 847 which would amend Section 404(c) of the Sarbanes-Oxley Act to exempt issuers with a market capitalization of less than $500 million, and issuers that are depository institutions with assets of less than $1 billion, from an internal control evaluation as prescribed by Section 404(b).

Review the revised version on the House Financial Services' website.

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