SEC adopts amendments to modernize Reg S-K reporting by public companies
The U.S. Securities and Exchange Commission today announced that it voted to adopt amendments aimed at modernizing public company disclosure rules, the first significant changes in Regulation S-K in more than 30 years. The changes affect the description of business (Item 101), legal proceedings (Item 103), and risk factor disclosures (Item 105) that registrants are required to make under the SEC regulation. The S-K Study was mandated by a provision of the Jumpstart Our Business Startups (JOBS) Act enacted in April 2012 by President Barack Obama. The rules “are rooted in materiality and seek to elicit information that will allow today’s investors to make more informed investment decisions,” SEC Chairman Jay Clayton said in a release. “I am particularly supportive of the increased focus on human capital disclosures, which for various industries and companies can be an important driver of long-term value.” A release and fact sheet on the new rules can be found here.