L.262/2005 (Savings Law) and Sarbanes Oxley Act (SOX)
A law that was introduced in 2005 (“Savings Law”) concerning new requirements for the financial reporting of listed companies, including the obligation to:
- appoint a manager responsible for preparing the corporate accounting documents, with the assignment of specific duties and responsibilities
- draft administration and accounting procedures for the preparation of financial statements, the interim report and, where applicable, the consolidated financial statements, as well as any other financial documents
- provide a written declaration in relation to documents and communications issued to the market and the relative financial reports, including interim reports
- provide written confirmation by the appointed manager regarding the financial statements, the interim report and, where applicable, the consolidated financial statements
Impact on the Company
Besides the above-mentioned need to appoint a manager responsible for preparing the corporate accounting documents (usually the CFO) and give him/her sufficient resources and powers, it is necessary to formalise adequate administration and accounting procedures that define the control activities to support the process of preparing financial reports (annual and interim reporting frequency).
In addition, it is necessary to periodically assess the adequacy and effective application of the administration and accounting procedures and supporting information systems.
These are mandatory requirements for all listed companies and/or issuers of financial instruments listed on the Italian market and in the EU and, on a cascade basis, and in certain circumstances, for all their subsidiaries.
The application of the “262” system is an opportunity to improve the transparency and reliability of the corporate accounting control system and an adjustment is also relevant for the purposes of compliance with Legislative Decree 231/2001 (with reference to the offence of false accounting).
The «SOX» (Sarbanes-Oxley Act)
These are the rules on disclosure of financial statements that have many aspects in common with the “262” rules, having a similar impact on corporate governance systems and requiring the establishment of appropriate administration and accounting procedures and safeguards, as well as ensuring their continuous monitoring and updating.
Compliance with these regulations is required of all Italian companies listed in the U.S.A. (SOX) or subsidiaries of groups listed in the U.S.A.
RC Advisory acts as the point of reference for all “262” project phases[separator color=’#FFF’ thickness=’1′ up=’30’ down=’30’] href="#" data-color-override="false" data-hover-color-override="false" data-hover-text-color-override="#fff">BACK