What is the new SEC rule?
On Monday, the Securities and Exchange Commission (SEC) voted three-to-one to issue draft rules that will require publicly traded corporations to be more transparent with investors about their greenhouse gas emissions and how climate change may pose a risk to their businesses.
What are the four basic requirements for plain English identified by the SEC?
The SEC’s “Plain English” Rule for a Registration Statement
- Definite, concrete, everyday language;
- short sentences;
- active voice;
- bullet lists for complex material;
- no legal jargon;
- no highly technical business terms;
- no double negatives (or “multiple” negatives for those truly awful drafting attorneys).
Where can I find SEC releases?
SEC.gov | SEC Interpretive Releases.
What is disclosure requirements?
Disclosure requirements allow media and public to examine campaign funding. These requirements allow interested parties, such as the media and the public, to examine records otherwise hidden from them. The result is closer scrutiny of facts and figures and of the relationships between political actors.
What is an SEC release?
The Commission occasionally publishes “concept” releases to solicit the public’s views on securities issues so that we can better evaluate the need for future rulemaking. We encourage the public to submit comments on the following concept releases during the comment period.
What is plain English documentation?
A plain English document is legally accurate and precise. It does not change or distort the impact of the original. It ensures that the expression of the law is clear and free from obscurity and convoluted language. • Plain English is a full version of the language, not a truncated form or a type of basic English.
Who does Regulation SK apply to?
Applicability. In a company’s history, Regulation S-K first applies with the Form S-1 that companies use to register their securities with the U.S. Securities and Exchange Commission (SEC) as the “registration statement under the Securities Act of 1933”.
What are SEC interpretive releases?
SEC Interpretive Releases Interpretive releases (like concept releases) are not enforceable laws and regulations but provide useful guidance as to the position of the Commission on various issues. The “Interpretive Release” web page includes interpretive releases from 1995 to the present.
What are the types of disclosures?
There are four types of disclosure rules: financial, conflict of interest, reporting and legal.
What does the SEC consider a material event?
Materiality concerns the significance of an item to users of a registrant’s financial statements. A matter is “material” if there is a substantial likelihood that a reasonable person would consider it important.
Do you need to file a press release with an 8-K?
To determine whether you need to submit an 8-K, your management team needs to ask itself this question: Does this event affect decisions made by investors, now or in the future? If you answer yes, then you need to file the 8-K.
What is a 701 Disclosure?
Rule 701 exempts certain sales of securities made to compensate employees, consultants and advisors. This exemption is not available to Exchange Act reporting companies. A company can sell at least $1 million of securities under this exemption, regardless of its size.
What is the SEC best interest rule?
The SEC’s Regulation Best Interest (Reg BI) under the Securities Exchange Act of 1934 establishes a “best interest” standard of conduct for broker-dealers and associated persons when they make a recommendation to a retail customer of any securities transaction or investment strategy involving securities, including …
What makes plain English writing different?
Plain language (also known as plain English) is a way of writing or presenting information so that readers can understand it quickly and easily. Plain language should be easy to read, understand and use. Plain language avoids verbose or convoluted language, jargon, euphemism, and ambiguous language.
What is the difference between Regulation S-K and SX?
Regulation S-K is generally focused on qualitative descriptions while the related Regulation S-X focuses on financial statements.
What does Regulation S-X apply to?
Regulation S-X is a U.S. Securities and Exchange Commission rule that covers annual reports and financial statements from companies.
What is a Rule 415 offering?
A Rule 415 offering provides that purchasers within the first 60 days will receive a security with a higher yield than that to be received by subsequent purchasers. The registrant wished to extend the preferential purchase period for an additional 30 days.