On April 13, the Securities and Exchange Commission published a concept release, recommended by the SEC’s Division of Corporation Finance, regarding business and financial disclosure required by Regulation S-K. This concept release is part of a comprehensive disclosure effectiveness initiative recommended in the SEC staff’s report on review of disclosure requirements in Regulation S-K, which was required by the Jumpstart Our Business Startups Act (JOBS Act). In a statement at an open meeting to discuss the concept release, SEC Chair Mary Jo White noted that the recommendation “analyzes evolving business models, advancements in technology, and ongoing public dialogue on disclosure issues and seeks public input on how our business and financial disclosure requirements in Regulation S-K can best be modernized in the current context.”
Through the publication of the concept release, the SEC is seeking public comment on how to improve business and financial disclosure requirements in Regulation S-K, including changes to improve readability and navigability of public disclosure (for example, posing questions as to cross-referencing, hyperlinks, incorporation by reference and the use of company websites). The concept release does not seek comment with respect to other disclosure requirements in Regulation S-K, including disclosure requirements relating to executive compensation and governance matters.
The SEC’s concept release is available here.