We're seeing some major efforts in Congress right now to roll back previously enacted reform efforts, like credit and debit card reform measures, the Dodd-Frank Act, the Patriot Act and the Obama Healthcare initiative. It remains to be seen if these efforts will ever prove successful.
But we can look to Sarbanes-Oxley for an example of how legislation that is reviled can sometimes emerge as something that regulated entities eventually support.
A new survey of more than 300 chief audit executives by Grant Thornton has found that the vast majority, nearly 90 percent, do not believe the Sarbanes-Oxley Act of 2002 should be repealed. There was a day when that number would have been a lot lower. Frankly, the act has never been this popular.
So, is this legislation showing the way for laws that are currently unpopular? Maybe.
Early on, people spared no insult for Sarbox, which ended up being very expensive for companies large and small. But after years of working through the issues, the big companies eventually cracked the nut and were able to impressively streamline their 404 processes. These days, they have the process down to a science.
As for small companies, Dodd-Frank gave them a permanent reprieve from 404(b). It may be that once companies take the initial hit on some reform measures, they might end up better off.
That said, this argument will likely not prove persuasive with those who are opposing problems with the current crop of new regulations.
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