On Wednesday, the Securities and Exchange Commission said it had issued a published a concept release seeking feedback on the what should be the definition of “foreign private issuer.”
According to the SEC, foreign private issuers benefit from certain accommodations and exceptions from the disclosure and filing requirements of federal securities laws. The concept release requests public input on whether the definition of foreign private issuer should be amended in light of changes to the population of foreign private issuers over the last two decades.
“Attracting foreign companies to U.S. markets and providing U.S. investors with the opportunity to trade in those companies under U.S. laws and regulations remains an objective. That objective must be balanced with other considerations, including providing investors with material information about these foreign companies, and ensuring that domestic companies are not competitively disadvantaged with respect to regulatory requirements,” SEC Chairman Paul S. Atkins said. “The first step in striking this balance is to determine which foreign companies should qualify as foreign private issuers and be able to avail themselves to the accommodations that go with that status.”
SEC concept releases are a way for the commission to get feedback from the public in advance of decision making about possible rule changes. Concept releases usually outline a topic of concern, identify possible approaches and raise questions for the public to weigh in on.
In this concept release, the SEC is seeking comment on the current foreign private issuer definition as well as the costs, burdens and benefits that may arise from any possible regulatory responses. The concept release will remain open for 90 days from publication of the request in the Federal Register, officials said.