Despite the bright spotlight of the ongoing trial of Enron and its top executives Ken Lay and Jeff Skilling, yesterday an SEC advisory committee made recommendations that "small" (fully 80% of all companies now covered) companies should be allowed to ignore the key components of the Sarbanes-Oxley Corporate Reform Act, the law passed to prevent more Enrons. PIRG, the Consumer Federation of America, Consumers Union and other leading groups sent a strongly-worded letter today to SEC Chairman Chris Cox and Public Company Accounting Oversight Board Acting Chairman Willis Gradison urging them to reject the recommendations and disband the committee. We argued that the recommendations

are in direct conflict with the law, would undermine investor confidence, and do not fulfill the Committee's original charge to "conduct its work with a view to protecting investors." Instead, we urge you to disband the advisory group and to start fresh in your search for ways to minimize the cost of regulatory requirements for smaller public companies while retaining their important investor protections.