Is your company drowning under the burden of ever-growing corporate disclosure requirements? If the answer is yes, we have good news.
In a recent report to Congress, the Securities and Exchange Commission (SEC) outlined a new initiative intended to streamline disclosure requirements for U.S. public companies under Regulation S-K. The report, which was mandated by the 2012 Jumpstart Our Business Startups (JOBS) Act, reflects the agency’s view that the updated corporate disclosure requirements should stress that the quality of the information shared is far more important than the quantity.
“Although a comprehensive approach would likely be a longer-term project involving significant staff resources across the Commission, the staff believes that a comprehensive approach would be able to achieve the dual goals of streamlining requirements for companies, including emerging growth companies, and focusing on useful and material information for investors,” the SEC said in the report.
In addition to providing a comprehensive overview of current corporate disclosure requirements under Regulation S-K, the SEC report also outlines the following as issues that warrant further review:
Exhibit requirements
Offering-related requirements
Executive compensation requirements
Corporate governance disclosure requirements
Risk-related requirements
Requirements for description of business and description of properties
According to SEC Chair Mary Jo White, the next step is for SEC staff to develop specific recommendations for updating the rules governing what a company must disclose in its filings. “We will seek input from companies about how we can make our disclosure rules work better for them and will solicit the views of investors about what type of information they want and how it can be best presented. The ultimate objective is for the Commission to improve the disclosure regime for both companies and investors,” she stated.
The SEC’s Office of the Chief Accountant also plans to work with the U.S. Financial Accounting Standards Board’s (FASB) to identify ways to improve effectiveness of disclosures and eliminate duplication.
Given that corporate disclosures have become one of the most costly and time-consuming compliance tasks for many corporations, the SEC efforts are certainly welcome news. However, given the number of other important issues on the agency’s regulatory agenda, it may be some time before companies actually see relief.
If you have any questions about the SEC’s latest report or would like to discuss your company’s corporate disclosures, please contact me, Dan Brecher, or the Scarinci Hollenbeck attorney with whom you work.
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
