The Securities and Exchange Commission (SEC) has voted to adopt amendments to certain disclosure requirements that have become duplicated, overlapping or outdated. This is compared to other Commission disclosure requirements, U.S Generally Accepted Accounting Principles (GAAP), or changes in the environment.

SEC’s chairman Jay Clayton said: “It is important to review our regulations to ensure that they evolve along with our capital markets and remain effective and efficient. Today’s amendments are an example of how thoughtful reviews can prompt changes for the benefit of investors, public companies and our capital markets.”

The SEC is also referring certain disclosure requirements that overlap with, but require information incremental to the Financial Accounting Standards Board (FASB) for consideration potential incorporation into GAAP.

The Amendments

The amendments derive as part of an initiative from the Division of Corporation Finance to review the disclosure requirements applicable to issuers to consider ways to improve the requirements for the benefit of investors and issuers.

As part of the SEC’s efforts to implement the Fixing America’s Surface Transportation (FAST) act, the amendments requires the commission to eliminate provisions of Regulation S-K  that are duplicative, overlapping, outdated or even unnecessary

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

It will also aim to simplify and update the disclosure of information to investors, including long-term main street investors. It will also reduce compliance burdens for companies without significantly altering the total mix of information available to investors.

The amendments will be effective 30 days from publication in the Federal Register.

Highlights of the Amendments

Public reporting companies including foreign issuers are the ones primarily affected by the amendments.

Some of the amendments will also apply to other entities which the SEC regulate, this includes; Regulation A issuers, investment advisers, investment companies, broker-dealers and nationally recognised statistical rating organisations.

 

By Mishelle Thurai