Corp Fin to Review Disclosure Rules & Cybersecurity Protection in Fiscal 2015
Outlining next year’s policy objectives, Report on Objectives – Office of the Investor Advocate has been released by the U.S. Securities and Exchange Commission’s (“SEC”) Office of the Investor Advocate (“the Office”). Published on June 24th, the report details two major projects the Office will work on during fiscal year 2015. The projects include assisting the SEC’s Division of Corporation Finance (“Corp Fin”) revise disclosure requirements and reviewing cybersecurity for investor protection.
Mandated by the JOBS Act, the SEC’s Mary Jo White considers the review of disclosure requirements in Regulation S-K a high priority. Using recommendations from the Report on Review of Disclosure Requirements in Regulation S-K and data from the “Disclosure Effectiveness” project, Corp Fin will assess what information is most useful to investors, if technology should be utilized to improve disclosures, and if any other material should be included.
Also during fiscal 2015, the Office will study the SEC, Financial Industry Regulatory Authority and stock exchanges in regards to cybersecurity. Per the Report on Objectives, investor protections have not caught up with changes in Wall Street’s technology, resulting in the Office assessing changes proposed in Release No. 34-69077, Regulation Systems Compliance and Integrity. If the changes are finalized, securities exchanges and clearinghouses will be required to confirm whether their technology systems can endure high trading volumes and other stressful scenarios.
Aside from the projects on disclosure rules and cybersecurity, the Office has plans to help the SEC review the equity market and determine whether it is fair for investors. In addition, the Office will address concerns of municipal securities market investors and elder financial abuse. The fiscal year is scheduled to start on October 1st.
Topics: Compliance, Cybersecurity, disclosure, Division of Corporation Finance "Corp Fin", Financial Industry Regulatory Authority "FINRA", Investor Protection, JOBS Act, Mary Jo White, Office of the Investor Advocate, Regulation S-K, U.S. Securities and Exchange Commission "SEC"