SEC Simplifies Disclosure Requirements for Public Companies

Client Advisory
April 2, 2019

The Securities and Exchange Commission recently adopted amendments to modernize and simplify disclosure requirements for public companies. The changes made will have a broad impact on many rules and forms, primarily by amending Regulation S-K. The amendments were adopted as part of a mandate for the SEC to simplify rules under the Fixing America’s Surface Transportation Act (FAST Act), and follow on earlier simplification efforts under the FAST Act in 2018.

The amendments are intended to improve the readability and navigability of company disclosures and to discourage repetition and disclosure of immaterial information, as well as incorporate technology to improve access to information. The amendments also include parallel amendments to several rules and forms applicable to investment companies and investment advisers. Notably, the amendments also add a few new requirements applicable to public companies.

Simplifications

New Requirements

Though the bulk of the amendments eliminate or simplify disclosures, a few new requirements were added:

The amendments, which can be found here, are effective May 2, 2019, except for the amendments to the rules governing the redaction of confidential information in material contracts, which are effective as of April 2, 2019. Therefore, these amendments may be in effect by the time companies with quarterly reports due in May make those filings. 

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If you would like further information regarding these amendments or other recent amendments adopted by the SEC, please contact the lawyer at Sullivan & Worcester LLP with whom you regularly consult, or any of the lawyers listed above.

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