Financial Advisor Magazine in their December 1, 2015 issue is reporting that Congress has mandated that the Securities and Exchange Commission simplify certain corporate reporting requirements that lower the costs and burdens to companies preparing some of the most basic SEC disclosure statements, such as their annual Form 10-K and their quarterly Forms 10-Q.
Congress is also ordering the SEC to make the forms more readable and easier to navigate.
These directions from Congress are included in the five-year transportation bill now approved by both the House and the Senate. The Regulation S-K guidelines requiring lists of company officers, executives, and director’s compensation, material legal costs and fraud enforcement actions against the company are extremely comprehensive, according to Michael Lowman who practices securities law with Jenner & Brock in Washington, D.C.
Reducing the costs and time in reporting requirements that may have little to no value to investors can be a step in the right direction for many companies. Despite the rumors though, noting is in the bill that would prevent the SEC from adopting a fiduciary standard for broker-dealers or from the Department of Labor from imposing a similar fiduciary requirement on pension plan advisors.
BYRON RAMBO, MBA. EA