Federal Register: SEC Proposes to Modernize and Simplify Regulation S-K Disclosure Requirements

An SEC proposal to simplify disclosure requirements for public companies, investment advisers and investment companies was published in the Federal Register.

Pursuant to a FAST Act mandate, the SEC proposed simplifying certain aspects of Regulation S-K to "reduce the costs and burdens on registrants while continuing to provide all material information to investors." The proposed amendments are also intended to streamline requirements to reduce the repetition and disclosure of immaterial information.

Specifically, the proposal would:

• amend rules or forms in order to eliminate risk factor examples listed in the disclosure requirement;

• change the description of property requirements to emphasize the materiality threshold;

• revise exhibit filing requirements and the related process for confidential treatment requests;

• change the "Management's Discussion & Analysis" requirements to allow registrants flexibility in reporting old data that is no longer material; and

• require (i) data tagging for items on the cover page of certain filings and (ii) the use of hyperlinks for certain information available on EDGAR.

The SEC proposed similar changes to rules and forms for investment companies.

Comments on the proposal must be received by January 2, 2018.