European companies can expect to find it hard complying with the Sarbanes-Oxley Act if they want to list in US. Now they have to face complying with the Act even after they have de-listed.

As a consequence companies may decide not to even list on the American capital markets in the first place.

So runs the argument from EU Internal Market commissioner Fritz Bolkstein. Writing to William Donaldson of the SEC and Jon Snow, US Treasury Secretary last month.

Companys that de-list from the NYSE and NASDAQ have to supply reports to the SEC for months after. To escape the requirements, the firms need to show they atrracted less than 300 American shareholders. Business leaders want to change the measurement to trading volumes.

Previously the issue of compliance with the Act has been raised. However this is the first time de-registration has been covered.

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