SEC updates reporting rules for public companies

From: RegTech Analyst

The Securities and Exchange Commission (SEC) has voted to update the description of business, legal proceedings and risk factor disclosures that registrants are required to make pursuant to Regulation S-K.

Regulation S-K is a prescribed regulation under the US Securities Act of 1933. It lays out reporting requirements for various SEC filings used by public companies.

The amends basically mark the first time in three decades that the rules have  undergone significant revisions, according to the SEC.

“Today we modernised our public company business disclosure rules for essentially the first time in over 30 years,” said Jay Clayton, chairman of the SEC. “Building on our time-tested, principles-based disclosure framework, the rules we adopt today are rooted in materiality and seek to elicit information that will allow today’s investors to make more informed investment decisions.

“I am particularly supportive of the increased focus on human capital disclosures, which for various industries and companies can be an important driver of long-term value. I applaud the staff for their dedication and thoughtful approach to modernising and improving these rules and adding efficiency and flexibility to our disclosure framework.”

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