SEC Director of Corporation Finance Reviews Upcoming Regulatory Priorities

SEC Division of Corporation Finance Director William Hinman summarized the SEC's upcoming regulatory priorities. Director Hinman focused on capital formation and improving the SEC's disclosure regime.

In testimony before the U.S. House Subcommittee on Capital Markets, Securities and Investment, Mr. Hinman stated that the Division will:

• complete an SEC Staff recommendation to amend the financial thresholds for companies to qualify under "smaller reporting company eligibility";

• review public company disclosure requirements under Regulation S-K and financial statement requirements under Regulation S-X;

• recommend final rules to revise disclosure requirements that are "outdated, overlapping, or duplicative" with other SEC Rules or U.S. GAAP;

• revise the SEC's Conflicts Minerals Rule due to "portions of that rule being set aside as a result of litigation";

• implement executive compensation rulemakings required by the Dodd-Frank Act regarding "hedging, clawbacks, and pay versus performance"; and

• consider ways to incentivize more companies to partake in the U.S. IPO process.