In February 2013, Nasdaq proposed a new rule requiring—for the first time—all Nasdaq-listed companies to establish and maintain an internal audit function. Under the proposal, IPO companies listing on Nasdaq after June 30, 2013 would have been required to establish the internal audit function before listing, and existing Nasdaq-listed companies would have been required to establish this function no later than December 31, 2013. Read our earlier post on Nasdaq’s proposal.

This week Nasdaq announced that it was withdrawing the proposal in order to “adequately consider” the “breadth and nature of the comments” on the proposal. Nasdaq’s announcement indicated that it intends to revise the proposed rule, taking into account the comments, and then resubmit it for SEC approval. Read Nasdaq’s statement here.