The 2002 act passed to protect investor interests is commonly known as what?

• A. Gramm-Leach-Bliley Act
• B. Sarbanes-Oaxley Act
• C. Dodd-Frank Act
• D. Foreign Corrupt Practices Act

Answer: (B)

Investor protection through stronger corporate governance was addressed in a 2002 law commonly known as the Sarbanes-Oxley Act. This reform was enacted after major corporate scandals to restore investor confidence by tightening financial reporting and accountability. It established the Public Company Accounting Oversight Board to oversee audits, strengthened rules on auditor independence, required top executives to personally certify financial statements, and mandated robust internal controls and disclosures with severe penalties for fraudulent activity. The other acts in the list address different areas: Gramm-Leach-Bliley deals with financial services and privacy, Dodd-Frank expands financial regulation after the crisis, and the Foreign Corrupt Practices Act targets bribery of foreign officials.