The US Securities and Exchange Commission (SEC) voted Wednesday to propose amendments designed to update and simplify the commission’s disclosure requirements.
The proposed amendments are part of the SEC’s broad-based review of the effectiveness of its disclosure requirements and the presentation and delivery of disclosures that companies make to investors. The commission is required to eliminate provisions of Regulation S-K that are duplicative, overlapping, outdated, or unnecessary.
The proposal’s objective is to eliminate redundant, overlapping, outdated, or superseded provisions in light of changes to SEC disclosure requirements, US GAAP, IFRS, and technology. In addition, the SEC is seeking comment on certain disclosure requirements that overlap with US GAAP to determine whether to retain, modify, eliminate, or refer them to the US Financial Accounting Standards Board for potential incorporation into US GAAP.
“The proposed amendments address outdated and redundant disclosure requirements while continuing to require companies to provide investors with what they need to make informed decisions,” SEC Chair Mary Jo White said in a news release.
The proposal would primarily apply to public companies, including foreign private issuers. But it also would involve requirements that apply to other entities the SEC regulates, including Regulation A issuers, investment companies, broker-dealers, and nationally recognised statistical rating organisations.
Public comment will be accepted for 60 days following publication of the proposal in the Federal Register.
—Ken Tysiac (ktysiac@aicpa.org) is a CGMA Magazine editorial director.