SEC Division Director Reviews Agency Efforts to Ensure Corporate Disclosure

In testimony before the House Subcommittee on Capital Markets, Division of Corporate Finance ("Division") Director Erik F. Gerding reviewed Division efforts to ensure that proper disclosures and guidance were available to market participants.

In testimony on the Division’s efforts to review reporting companies’ disclosure and financial statements, Mr. Gerding stated that the Division continues to feel the impact of the surge in initial public filings between 2021 and 2022. He reported an 18 percent increase in the number of active public companies since 2021. To facilitate a more "focused review of filings," Mr. Gerding stated that the Division established the Office of Crypto Assets and the Office of Industrial Applications Services under its Disclosure Review Program.

Mr. Gerding noted that the SEC adopted 11 rules recommended by the Division and that it proposed an additional six rules in the past two years.

Mr. Gerding highlighted efforts to provide public guidance "by staying apprised of market developments and current events that may impact disclosure obligations." He said that the Division provided guidance to small businesses by answering approximately 1,000 small business inquiries each year regarding a range of topics, including mergers and acquisitions and foreign or domestic issuers undertaking offshore offerings.