Nasdaq’s president and CEO, Bob Greifeld, applauded the U.S. Securities and Exchange Commission’s proposed changes to the implementation of Section 404 of the Sarbanes Oxley Act.

“We welcome the important changes proposed by the SEC today. I believe the proposed rules will allow companies to focus on the most important aspects of internal controls and financial reporting, while removing unnecessary expense,” Greifeld said in a statement. “In doing so, it addresses some of the key Section 404 issues that created a perception gap with regard to the cost and potential jeopardy of regulatory compliance in the U.S. markets as compared to other capital market centers.”

“It will also allow for a more meaningful recognition of the good Sarbanes-Oxley has done — independent directors, more effective disclosure, and audit committees that are more accountable and involved,” he added. “These elements are preserved as bulwarks of investor confidence.”