Which employees are required by Sarbanes-Oxley Act Sections 406 and 407 to abide by a company's code of ethics?

The Sarbanes-Oxley Act Sections 406 and 407 specifically require principal executive officers, financial officers, and others in similar roles to adhere to a company's code of ethics. This is designed to ensure that those in critical positions of authority and responsibility are held to a high standard of ethical behavior, as they significantly influence a company's financial reporting and corporate governance.

By targeting key individuals involved in financial oversight and reporting, the legislation aims to promote transparency and integrity in financial practices, which is essential to restoring investor confidence. These positions often have access to sensitive information and the ability to make decisions that could impact the accuracy of financial disclosures. Therefore, having stringent ethical standards for these roles is vital to mitigate risks related to financial fraud and ensure compliance with regulatory requirements.