Saturday, July 03, 2010

Supreme Court upholds Sarbanes-Oxley (sort of); but administrative agencies may need more watching as to ideological behavior

The Supreme Court upheld most of the core mechanics of the Sarbanes-Oxley Act in a decision Monday June 28, in a case named “Free Enterprise Fund v. Public Accounting Oversight Board”, with slip opinion here.

David S. Hilzenrath has a story about the opinion on p A7 of the June 29 Washington Post, “Sarbanes-Oxley Act upheld by Justices; Only SEC has power to remove board members, ruling says”, link here.

The text of the Act at the GPO site is here.

In 2005, I pre-interviewed for the possibility of becoming an agent for New York Life, and was told that according to Sarbanes-Oxley, agents receiving a training bonus could not have any outside income. For example, that could not be paid for advertising on their blogs, and it was questionable if they could continue receiving royalties on books. I asked some employment people about this, and they were surprised, but I never heard anything more definitive.

The Free Enterprise Fund may be right in questioning whether agencies with administrative powers to regulate individuals and businesses should themselves have more specific oversight; otherwise citizens could be left at the whims of the ideologies of oversight boards.

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