SEC Solicits Comments on Disclosure Requirements under Regulation S-K

The SEC published a concept release intended to assess (i) whether business and financial disclosure requirements in Regulation S-K continue to provide the information necessary for investors to make informed voting and investment decisions, and (ii) whether any of the rules have become outdated or unnecessary.

The SEC specified that it is seeking comment on whether and, if so, how:

• specific disclosures play an important or useful part in investment and voting decisions, and whether more, less or different information might be needed;

• the SEC should revise current requirements in order to enhance the information provided to investors while at the same time considering whether the revised requirements promote efficiency, competition and capital formation;

• the SEC should revise the requirements to enhance the protection of investors;

• current requirements balance the costs of disclosure with the benefits appropriately;

• the SEC could lower the cost to registrants of providing information to investors by factoring in considerations such as advancements in technology and communications; and

• the SEC could increase investors' benefits and facilitate their access to disclosure by modernizing the methods used to present, aggregate and disseminate disclosure.

In addition, the SEC asked for comments on the potential challenges of current disclosure requirements, and on the challenges that may result from possible regulatory responses explored in this release or from responses suggested by commenters. The SEC emphasized that it will "consider any input from investor focus group studies or surveys, the Investor Advisory Committee and the Advisory Committee on Small and Emerging Companies."

Comments on the concept release must be submitted within 90 days after its publication in the Federal Register.