The newly signed Jumpstart Our Business Startups (JOBS) Act will, among many things, reduce the number of compliance regulations with which companies will have to contend.
While this may reduce some paperwork and reduce costs, it wouldn’t be prudent to abandon compliance exercises merely because they are no longer law.
As we have seen in the past 10 years since the Sarbanes-Oxley Act (SOX) was passed, companies have been able to rationalize compliance efforts to help streamline their businesses. In one case, Wal-Mart’s “rightsizing” efforts with SOX enabled more control, better governance and greater efficiencies.
According to Chris McClean, a senior analyst at Forrester Research Inc., the JOBS act will “reduce the regulatory burden for smaller companies that were planning to establish full SOX programs.”
Reduction of regulation overhead is always a good thing, but don’t let JOBS become an excuse for avoiding or reducing corporate governance policies that add value to the business.