The Supreme Court rejects unaccountable industry oversight boards.
Freedom and limited government won a victory in the Supreme Court on Monday. Yet the victory is too narrow to save our nation from the unintended consequences of the burdensome and ill-drafted law that is the 2002 Sarbanes-Oxley Act.
In Free Enterprise Fund v. PCAOB, the court ruled that Congress went beyond its powers in establishing the Public Company Accounting Oversight Board (PCAOB) as part of Sarbanes-Oxley. To ensure a majority in the 5-4 decision, however, the court kept its judgment narrow and chose not to invalidate all of Sarbanes-Oxley, nor even the entire PCAOB. Since Sarbanes-Oxley remains “fully operative …Read More