Effective Date Set for SEC Rule on Enhanced Issuer Repurchase Disclosures

The new SEC rule on enhanced issuer repurchase disclosures was published in the Federal Register with an effective date set for July 31, 2023.

The new rule requires additional information on the purpose of issuer repurchase programs and more detailed repurchase data on a quarterly or semi-annual basis (See previous coverage.)

Exchange Act Rule 13a-21 ("Purchases of equity securities by the issuer and affiliated purchasers") and corresponding Form SR apply to registered issuers. The final rule covers foreign private issuers and certain types of registered closed-end funds, and requires reporting of share repurchases made by, or on behalf of an issuer or any affiliated purchaser on each day the entity enters into share repurchases. The rule also requires an issuer to provide the rationale for its share repurchases, and whether officers or directors of the issuer sold shares during a period where the issuer was engaged in repurchasing shares.