# Disclosure Required by Sections 406 and 407 of the Sarbanes-Oxley Act of 2002
> **US Securities and Exchange Commission** · Final rule; request for comment. · Published 2003-01-31 · Effective 2003-03-03 · 68 FR 5110
## Document
- **Document number:** 03-2018
- **Category:** final-rule
- **Agency:** US Securities and Exchange Commission
- **Federal Register citation:** 68 FR 5110
- **CFR reference:** 17 CFR 228
- **Publication date:** 2003-01-31
- **Effective date:** 2003-03-03
- **Docket:** Release Nos. 33-8177
## Abstract

We are adopting rules and amendments requiring companies, other than registered investment companies, to include two new types of disclosures in their annual reports filed pursuant to the Securities Exchange Act of 1934. First, the rules require a company to disclose whether it has at least one "audit committee financial expert" serving on its audit committee, and if so, the name of the expert and whether the expert is independent of management. A company that does not have an audit committee financial expert must disclose this fact and explain why it has no such expert. Second, the rules require a company to disclose whether it has adopted a code of ethics that applies to the company's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. A company disclosing that it has not adopted such a code must disclose this fact and explain why it has not done so. A company also will be required to promptly disclose amendments to, and waivers from, the code of ethics relating to any of those officers. These rules implement the requirements in Sections 406 and 407 of the Sarbanes-Oxley Act of 2002. We also request additional comments regarding the appropriate treatment of foreign private issuers in light of our proposed rules implementing Section 301 of the Act.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2003/01/31/03-2018/disclosure-required-by-sections-406-and-407-of-the-sarbanes-oxley-act-of-2002)
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