By Hedley Lawson, Global Managing Partner, Aligned Growth Partners, LLC
The Securities and Exchange Commission voted to remove certain disclosure requirements for public companies, making additional changes to Regulation S-K. Among other disclosures, the amendment focuses on the management discussion and analysis section of companies’ financial statements.
The SEC last approved in August changes to S-K, giving companies more flexibility in reporting risk factors and legal proceedings in their financial statements. According to SEC Chair Jay Clayton, “The improved approach to these disclosures reflects the broad diversity of issuers in our public markets and will allow investors to make better capital allocation decisions, while reducing compliance burdens and costs and maintaining strong investor protection.”