The SEC has proposed altering rules determining how public firms disclose business, legal and risk factors in company filings. In a letter to the SEC, Sen. Carl Levin (D-Mich.) said he was concerned that the proposal would allow companies to hide information about their financial performance from investors. The SEC's suggestions will also look to discourage the inclusion of repetitions or non-material information. The changes are now subject to a 60-day public comment period.
The SEC has proposed altering rules determining how public firms disclose business, legal and risk factors in company filings. The proposal is in a bid to reduce to compliance burden for these firms and improve readability of disclosures made to investors. The SEC's suggestions will also look to discourage the inclusion of repetitions or non-material information. The changes are now subject to a 60-day public comment period.