The Securities and Exchange Commission (SEC) adopted amendments to update the disclosure requirements for public companies, investment advisers, and investment companies.
The amendments are designed to eliminate outdated and unnecessary disclosure and make it easier for them to access information.
The amendments are intended to improve the readability of company disclosures and eliminate the repetition and disclosure of immaterial information. They will also increase flexibility in the discussion of historical periods and allow companies to redact confidential information from most exhibits without filing a confidential treatment request. Further, they incorporate technology to improve access to information on the cover page of certain filings.
“Investors will benefit from the SEC staff’s exemplary work to improve disclosure,” SEC Chairman Jay Clayton said. “The amendments adopted today demonstrate our focus on modernizing our disclosure system to meet the expectations of today’s investors while eliminating unnecessary costs and burdens.”
The amendments on the redaction of confidential information in certain exhibits will become effective upon publication in the Federal Register. Most of the rest of the amendments will be effective 30 days after they are published in the Federal Register. However, the requirements to tag data on the cover pages of certain filings are subject to a three-year phase-in, while the requirement that certain investment company filings be made in HTML format and use hyperlinks will be effective on or after April 1, 2020.