SEC Disclosure Rules to Change
In an attempt to fulfill deregulation promises made by the current Presidential administration, acting U.S. Securities & Exchange Commission (SEC) Chair Michael Piwowar has set his sights on certain Dodd-Frank disclosures. He has invited input on rules relating to conflicts minerals and executive pay ratios, steps that could decrease reporting requirements for public companies.
Although somewhat unusual for an interim chair to take an active role in shaping policy, some say the move is consistent with expectations from the new President and Congress who are determined to roll back “onerous” requirements currently in place.
Congress already has proposed legislation entitled The Financial Choice Act, which would scale back several Dodd- Frank reforms, including the aforementioned conflicts minerals and executive-pay ratio disclosures. Acting Chair Piwowar has invited comment on both rule change proposals.
He also ordered SEC staff to reconsider whether the agency’s guidance regarding conflicts minerals put in place in 2014 was still valid, or if change was needed. As it currently stands, in order to comply with Dodd-Frank requirements, certain public companies are required to make an effort to determine whether their products contain minerals mined in Central African war zones. Piwowar has called the rule “misguided,” claiming it has done nothing to stop violence while harming legitimate mining operations in the area. Further, he also sought to reconsider implementation of the rule that currently requires companies to disclose what their CEO makes compared to the average company worker.
Stay Informed about SEC Disclosure Rules
Check back here for regular updates regarding proposed rule changes and reporting requirements. One thing is for certain: SEC disclosure rules likely will change. If you believe your broker or brokerage firm has failed to abide by the current rules, you may have certain legal rights that require your immediate attention.
Call a Los Angeles Securities Fraud Attorney Today
Contact an experienced Los Angeles securities attorney today for a consultation to discuss your rights and options and get informed about SEC Disclosure Rules.