§ 7266. Enhanced review of periodic disclosures by issuers

• (a) The Commission shall review disclosures made by issuers reporting under section 78m(a) of this title (including reports filed on Form 10–K), and which have a class of securities listed on a national securities exchange or traded on an automated quotation facility of a national securities association, on a regular and systematic basis for the protection of investors. Such review shall include a review of an issuer’s financial statement.
• (b) For purposes of scheduling the reviews required by subsection (a), the Commission shall consider, among other factors—
  • (1) issuers that have issued material restatements of financial results;
  • (2) issuers that experience significant volatility in their stock price as compared to other issuers;
  • (3) issuers with the largest market capitalization;
  • (4) emerging companies with disparities in price to earning ratios;
  • (5) issuers whose operations significantly affect any material sector of the economy; and
  • (6) any other factors that the Commission may consider relevant.
• (c) In no event shall an issuer required to file reports under section 78m(a) or 78 o (d) of this title be reviewed under this section less frequently than once every 3 years.