Tag: SEC

Clayton reviews 2019 regulatory priorities and risks the SEC is monitoring

In a speech given yesterday at Columbia University, SEC Chair Jay Clayton reviewed the SEC’s regulatory achievements over the past year, metaphorically slapping the SEC and the staff on the back for a job well done in accomplishing 88% of the items identified on the SEC’s near-term agenda for fiscal 2018. Of particular interest, however, was his discussion of the some of the priority items on the 2019 agenda.  In closing, Clayton hammered again at three risk areas that the SEC is currently monitoring—yes, those three. Clearly, the signal is that companies should consider these risks.

SEC and EDGAR closed on Wednesday in observance of national day of mourning

The SEC has posted this announcement regarding  the closure of the SEC and the EDGAR system on Wednesday, December 5, 2018, in observance of a national day of mourning for former President George H.W. Bush.

What happened at the SEC’s proxy process roundtable?

At last week’s proxy process roundtable, three panels, each moderated by SEC staff, addressed three topics:

proxy voting mechanics and technology—how can the accuracy, transparency and efficiency of the proxy voting and solicitation system be improved?
shareholder proposals—exploring effective shareholder engagement, experience with the shareholder proposal process, and related rules and SEC guidance
proxy advisory firms—can the role of proxy advisors and their relationship to companies and institutional investors be improved?
The first panel, on proxy plumbing, was characterized by the panelist who began the discussion as “the most boring, least partisan and, honestly, the most important” of the three topics. (But it was surprisingly not boring.)  The last panel, on proxy advisory firms, was characterized by Commissioner Roisman as the “most anticipated,” but the expected fireworks were notably absent—except, perhaps, for the novel take on the subject offered by former Senator Phil Gramm.   Here are the Commissioners’ opening statements: Chair Clayton, Stein and Roisman

SEC amends disclosure rules for mining companies

The SEC has adopted new rule amendments to modernize disclosures by mining companies. 

SEC provides equal treatment for victims of Hurricane Michael

The SEC  today provided relief for companies and persons directly or indirectly affected by Hurricane Michael and its aftermath.  Here is the Order and the related press release (as well as interim final temporary rules related to Reg Crowdfunding and Reg A). The relief is essentially the same as that provided to victims of Hurricane Florence.

SEC provides Hurricane Florence relief

The SEC has now provided relief for companies and persons directly or indirectly affected by Hurricane Florence and its aftermath.  Here is the Order and the related press release (as well as interim final temporary rules related to Reg Crowdfunding and Reg A).

Republican nominee to SEC confirmed

The Senate has confirmed the appointment of Elad Roisman as SEC Commissioner, replacing Republican Commissioner Michael Piwowar. He hails from that pipeline to the SEC, the Senate Banking Committee, where, according to Investment News, he served as Chief Counsel. Prior to that position, he served as counsel to SEC Republican Commissioner Daniel Gallagher.  

Is semiannual reporting on the horizon?

On the White House lawn before he boarded a helicopter for the Hamptons and his New Jersey golf club for the weekend, reporters had the opportunity to lob a few questions at the president.  While most of the questions were about security clearances and the criminal trials of his former staff, a different topic suddenly emerged in connection with an early morning tweet about quarterly reporting. The president said that, in his discussions with leaders of the business community regarding ways to improve the business environment, Indra Nooyi, the outgoing CEO of Pepsico, had suggested that one way to help business would be to trim the periodic reporting requirements from quarterly to semiannually. The argument is that the change would not only save time and money, but would also help to deter “short-termism,” as companies would not need to focus on meeting analysts’ expectations on a quarterly basis at the expense of longer term thinking. (For more on short-termism, see, e.g., this PubCo post.) He agreed that “we are not thinking far enough out,” and had asked the SEC to look into it.

Cooley Alert: SEC Amends Rule 701(e) and Issues Concept Release Regarding Rule 701 and Form S-8

Here’s some mighty fine reading: Cooley Alert: SEC Amends Rule 701(e) and Issues Concept Release Regarding Rule 701 and Form S-8.

SEC votes to amend Rule 701(e) and to issue concept release regarding Rule 701 and Form S-8

Just under the wire to satisfy a Congressional mandate, the SEC today voted unanimously to adopt an amendment to Rule 701(e) to raise the threshold that triggers the requirement for delivery of additional disclosure to investors.  The Commissioners also voted to issue a concept release soliciting comment on potential revisions to modernize Rule 701 and Form S-8, as Chair Jay Clayton observed, in light of “developments and innovations in labor markets and compensation practices.” The amendment to Rule 701(e) will become effective immediately on publication in the Federal Register.  Companies that “have commenced an offering in the current 12-month period will be able to apply the new $10 million disclosure threshold immediately upon effectiveness of the amendment.” Here is the press release, here are the final rules, and here is the concept release.