On December 9th, the SEC’s Office of the Advocate for Small Business Capital Formation issued its 2021 Annual Report, a comprehensive publication that provides an overview of both capital raising in communities across the nation, and entrepreneurs and investors who are building companies together from startups to small cap. {expires: 2022-01-20} Continue reading "SEC Staff Releases Report on Capital Raising..." »

The SEC voted on December 15th to propose rules that would address misconduct in the security-based swap (SBS) market, promote compliance with the Federal securities laws by security-based swap dealers and major security-based swap participants (SBS Entities), and increase transparency in the security-based swap market. Continue reading "SEC Proposes Rules to Prevent Security-Based..." »

On December 15th, the SEC voted to approve the 2022 budget of the Public Company Accounting Oversight Board (PCAOB) and the associated annual accounting support fee. The PCAOB monitors the audits and auditors of the financial statements that are submitted by registered broker-dealers and issuers. Section 109 of the Sarbanes-Oxley Act of 2002 requires the PCAOB to establish, with SEC approval, a reasonable accounting support fee to fund its operations. Continue reading "SEC Announces Approval of PCAOB Budget and..." »

On December 20th, the SEC updated the EDGAR system to Release 21.4. The system now supports the 2021Q4 versions of the taxonomies listed below. With this release, the Closed-End Fund (CEF) taxonomy will be accepted in EDGAR for the first time, and the Document and Entity Information (DEI) taxonomy has been updated to include elements for tagging auditor information. For more information, refer to the final 2021Q4 taxonomies’ Release Notes. Continue reading "SEC Releases 2021Q4 XBRL Taxonomies Update" »

To help filers avoid missing deadlines and reduce online traffic around crucial filing dates, the SEC releases a filing schedule detailing when it expects to receive the highest volume of EDGAR filings. The 2022 schedule is now available from the SEC. Continue reading "SEC Releases 2022 Peak Filing Volume Dates for..." »

On December 15th, the SEC proposed amendments that would enhance certain reporting requirements to improve the SEC’s ability to monitor and analyze money market fund data. Money market funds are a category of mutual funds registered under the Investment Company Act of 1940 (Act) and regulated pursuant to rule 2a-7 under the Act. Continue reading "SEC Proposes Money Market Fund Reforms" »

On December 15th, the SEC proposed amendments to Rule 10b5-1 to enhance disclosure requirements and investor protections against transactions in company securities. Adopted by the SEC in August 2000, Rule 10b5-1 provides corporate insiders an affirmative defense to insider trading: (1) for parties that commonly have access to material nonpublic information, including corporate officers, directors, and issuers, and (2) in circumstances where (subject to certain conditions) the trade was (a) under a binding contract, (b) part of an instruction to another person to execute the trade for the instructing person’s account, or (c) part of a written plan adopted when the trader was not aware of material nonpublic information. Continue reading "SEC Proposes Updates to Rule 10b5-1 Insider..." »

On December 15, the SEC proposed updates to rules regarding disclosure about repurchases of an issuer’s equity securities (or buybacks) registered under Section 12 of the Securities Exchange Act of 1934. The rule amendments would reinforce the current periodic disclosure requirements about purchases required to be provided in Form N-CSR for registered closed-end funds, Form 10-K and Form 10-Q for domestic issuers, and Form 20-F for foreign filers. The proposed amendments would also establish a new Form SR and require an issuer to utilize the new form to provide prompt disclosure regarding purchases of its equity securities.
Continue reading "SEC Announces Proposed New Rules for Share..." »

On December 2nd, the SEC adopted amendments to finalize provisional final rules to carry out congressionally mandated submission and disclosure conditions that were introduced in Sections 2 and 3 of the Holding Foreign Companies Accountable Act of December 2020 (HFCA Act). The interim final amendments apply to registrants that: (1) the SEC identifies as having filed an annual report on Forms 10-K, 20-F, 40-F or N-CSR with an audit report issued by a registered public accounting firm that is in a foreign jurisdiction; and (2) the Public Company Accounting Oversight Board (PCAOB) is unable to inspect or investigate entirely because of a position taken by an authority in that jurisdiction. The final changes implement new submission and disclosure requirements to increase transparency and investor access to pertinent information concerning these registrants. Continue reading "SEC Approves Amendments to Finalize Interim..." »

On November 23, FASB issued proposed updates to the U.S. Generally Accepted Accounting Principles (GAAP) Financial Reporting Taxonomy concerning the Proposed Accounting Standards Update (ASU) on Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The proposed taxonomy updates are comprised of new elements, element deprecations, reference revisions, and updates to documentation and standard labels. Continue reading "FASB Proposes Updates for Future Taxonomy..." »

The SEC has published proposed amendments designed to revise and enhance requirements for the means by which broker-dealers, security-based swap dealers (SBSDs), and major security-based swap participants (MSBSPs) maintain electronic records and produce prompt records. These changes are intended to modernize current record-keeping requirements to facilitate the production of more timely and accurate information. Continue reading "SEC Announces Proposed Modifications to..." »

On November 29th, the SEC’s Office of the Chief Accountant and the Division of Corporation Finance published Staff Accounting Bulletin (SAB) No. 120, an interpretive guidance for public companies which details how to properly identify and disclose compensation costs for “spring-loaded awards” made to executives. Spring-loaded awards are share-based compensation arrangements in which a company grants stock options or other awards shortly before it announces market-moving information, for example, the disclosure of a substantial transaction or an earnings release that surpasses expected results. Continue reading "SEC Staff Issues Accounting Guidance on..." »

On November 18th, the SEC announced that it is proposing Rule 10c-1, in accordance with the Congressional mandate in the Dodd-Frank Act that the SEC enhance efficacy and transparency pertaining to the loan or borrowing of securities for brokers, dealers, and investors. Consistent with the SEC’s goals, the proposed rule helps to ensure that market participants, the public, and regulators have access to timely and comprehensive information about the market for securities lending. Continue reading "SEC Proposes Rule to Provide Transparency in..." »