If there's one thing we learned from our long strange journey with Sarbanes-Oxley it is that small companies and big companies are affected by regulation in unique ways. We finally woke up to the fact that we couldn't possibly expect the exact same implementation schedule for small companies. It has been seven years since the law was passed, and the 404(b) compliance requirement is just now dawning. Some think a further delay for small companies would be wise. 

When it comes to other areas of compliance, we can likewise see some special burdens thrust on small companies. Consider email archiving: Big companies, especially in the financial services and healthcare industry, have certainly invested in archiving solutions. 

But for small companies, it remains something of an ad hoc process. A lot of companies are simply unaware of what state and federal laws require of them, reports TMCnet. A lot of these firms lack legal departments, and the burden falls to the IT staff, which isn't necessarily ideal. That said, more vendors are stepping up their activity when it comes to smaller companies and we may see some small-company optimized solutions. 

This is one ticking time bomb that can't be ignored. All it takes is one lawsuit or regulatory action for you to be exposed--and liable. 

Consider also some specific industries: When it comes to broker dealers, it's fair to say that the movement to sweep in a whole new regulatory framework has centered on the big firms, some of which were pushed to the brink in the credit crunch. To small broker dealers, this is a dangerous situation that might cost them dearly.  

About 4,600 of FINRA's 4,797 members are considered small broker-dealers, notes Financial Planning; they have fewer than 150 registered representatives. Regulatory costs and fees have been rising steadily for them. A slew of new regulations all hitting at the same time could be problematic. They are trying to raise awareness, but have had little apparent success, so far. Some argue for sunset provisions that would allow for tweaks to be made for small companies. 

Community banks are in the same situation. Some are doubtful that a single consumer protection agency will be able to give small banks a fair shake. They fear that they'll be viewed through a lens more appropriate for a global bank. "If a regulator comes in and compares us to Bank of America , there is no comparison," one executive tells the San Francisco Business Times. They're two different businesses with distinct models and cost structures. They feel better with multiple regulators, some of which will be sensitive to its size. Of course, others have decried the regulatory arbitrage that they feel has allowed big banks to game the system. 

We'll likely hear more about this. - Jim