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Specialist Accounting & Risk Management

SEC Public Company Compliance

SEC Public Company Compliance is an important part of managing a company’s finances and making sure that they meet the requirements of the governing agencies. Knowing the requirements of filing with the SEC is crucial to following the rules entirely and having the most thorough and accurate records of your company’s financial records.

Changes in Securities and Exchange Commission (SEC) regulations and interpretations seem to be developing at an ever-increasing pace, making it difficult for public companies, especially smaller public companies, to keep up with the rule changes and new compliance requirements.

When Does a Company Become Subject to the Reporting Requirements?

  • By filing a Section 12 registration
  • If the issuer’s securities are being held by either 2,000 or 500 persons who are not accredited investors, and if the valuation of the total assets are greater than $10 million
  • By filing a form S-1 Registration under the Securities Act of 1933
    • However, this becomes voluntary when a company has less than 300 shareholders at the beginning of that fiscal year

Why is SEC Compliance Important?

SEC compliance is meant to prevent fraud and deception.  By being compliant with the reporting policies of the Securities and Exchange Commission, you are agreeing to represent the finances of your company to the public and to potential investors in a fair and accurate manner.

The reporting company must also maintain accurate records and is subject to the Sarbanes – Oxley Act of 2002 which includes CEO/CFO certifications requirements, prohibition officer and director loans and independent auditor requirements. At any point, a company should be able to provide the most accurate information regarding its finances to shareholders or to regulating authorities – which is why compliance with the strict regulating guidelines is so important.

LehmanBrown, being a Public Company Accounting Oversight Board (PCAOB) registered company and having a history of international experience and expertise gives us the capabilities to offer assistance on all levels in assuring compliance with SEC for public companies. Even if a company maintains honest records and are outstanding at accounting for their own finances, the strict requirements for compliance have been seen to reveal inefficiencies or weaknesses in the management of finances.  Therefore, by having our dedicated team assist with meeting compliance requirements, it can be ensured that the results will be of the highest quality.

For more information concerning LehmanBrown’s SEC Compliance Services, please contact us at enquiries@lehmanbrown.com