SEC proposes simplifying disclosure requirements

Amendments proposed Wednesday by the SEC are designed to modernize and simplify disclosure requirements for public companies, investment advisers, and investment companies.

The proposal is intended to make disclosures required in Regulation S-K and related rules and forms more readable and easier to navigate while discouraging repetition and disclosure of immaterial information.

The SEC voted to propose:

The proposal includes parallel amendments to several rules and forms applicable to investment companies and investment advisers. Under the proposal, certain investment company filings would be required to include a hyperlink to each exhibit listed in the exhibit index of the filings. Certain investment company filings would be required to be submitted in HTML format.

“An effective disclosure regime provides investors with the information necessary to make informed investment choices without imposing unnecessary burdens of time and money on issuers,” SEC Chairman Jay Clayton said in a news release.

Public comments can be submitted for 60 days at sec.gov.

—Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.

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