SEC Proposes Enhanced Disclosure for Foreign Issuers
 
February 25, 2008
 

On February 13, 2008, the SEC unanimously voted to propose amendments to modernize its disclosure requirements for foreign companies. The proposed rule changes, which include the elimination of all paper submissions, are designed to update the SEC’s rules, reflect advancements in technology and respond to the increasing globalization of the capital markets.

One set of proposals, known as the Foreign Issuer Reporting Enhancements, would update Exchange Act filing requirements and enhance disclosure required by foreign private issuers. Key reporting enhancement proposals include the following: (i) permitting reporting foreign issuers to assess their eligibility to use the special forms and rules available to foreign private issuers once a year on the last business day of their second fiscal quarter, rather than on a continuous basis, which is currently required; (ii) accelerating the reporting deadline for annual reports filed on Form 20-F by foreign private issuers from six months to 90 days after the issuer’s fiscal year-end in the case of large accelerated filers and accelerated filers, and to 120 days after the issuer’s fiscal year-end for all other issuers, after a two-year transition period; and (iii) amending Form 20-F by eliminating an instruction to Item 17 of Form 20-F that permits certain foreign private issuers to omit segment data from their U.S. GAAP financial statements.

When available, the full text of the proposed rule changes will be posted on the SEC’s Web site.

http://www.sec.gov/news/press/2008/2008-20.htm