SEC Provides SOX 404 Relief

On August 9, 2006, the SEC adopted final rules providing relief to many foreign private issuers from compliance with Section 404 of the Sarbanes-Oxley Act. The SEC also proposed to grant relief to smaller public companies by extending the date for Section 404 compliance. The SEC's press release is available on its website at: http://sec.gov/news/press/2006/2006-136.htm. In particular,

• Foreign private issuers that are accelerated filers (but not large accelerated filers) and that file their annual reports on Form 20-F or 40-F will have an additional year to comply with Section 404(b) (requiring an auditor's attestation report on internal control over financial reporting). These companies will need to provide management's report on internal control over financial reporting in their annual reports for fiscal years ending on or after July 15, 2006 as currently required. However, the auditor's attestation report will not be required to be included until the filing of their annual