The Securities and Exchange Commission voted on Thursday to publish a concept release discussing and seeking public comment on modernizing certain business and financial disclosure requirements in Regulation S-K.
In particular, the SEC is seeking comment on “whether the disclosure requirements continue to elicit the information that investors need for investment and voting decisions and how registrants can most effectively present the information,” the U.S. regulator says in a statement.
The concept release also seeks comment on the costs and benefits of the disclosure requirements for companies and investors, and seeks to explore how the commission could improve the readability and navigability of company disclosures.
“Timely, relevant and material information is critical to investors and companies,” said SEC Chairwoman Mary Jo White. “The concept release establishes a thoughtful framework for better understanding investors’ and companies’ experiences with the disclosure requirements and whether investors are receiving the information they need to make informed investment decisions.”
The paper is part of a broader staff review of the requirements, and the presentation and delivery of disclosures that companies make to investors, the SEC says.
The public comment period will remain open for 90 days following publication in the Federal Register.