Higgins Highlights Corp Fin Initiatives in Congress Testimony
Promoting his division’s current initiatives and directives, the U.S. Securities and Exchange Commission’s (“SEC”) Corp Fin (“the Division”) Director Keith Higgins testified recently in front of the U.S. House of Representatives Committee on Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises. Some of the notables from Higgins’ testimony included:
- Review of Registrant Filings: Higgins stated that Corp Fin is dedicated to the financial statements and disclosures of the companies that make up 98 percent of total market capitalization. Based on the work completed thus far in fiscal 2014, Higgins believes the Division’s review of 4,500 reporting companies will be in line with fiscal 2013. In the meantime, Corp Fin will continue its efforts to increase the quality and consistency of comments, and the filing review process’ value.
- Corp Fin Rulemaking: Corp Fin is still working on its proposal regarding pay ratio disclosure, which has received more than 128,000 comment letters. Further, Higgins remarked that his staff is still working on the rulemaking for crowdfunding, per the JOBS Act. Thus far, the SEC has received more than 300 comment letters on its proposal. Corp Fin is preparing to send recommendations on both proposals to the SEC for final rules.
- Disclosure Effectiveness Study and Review: Originally, the Division concentrated its review of disclosure effectiveness on the business and financial disclosures mandated by periodic and current reports. Included in this review, Corp Fin staff is working with the Financial Accounting Standards Board to find ways to improve disclosure effectiveness in corporate financial statements, as well as reduce duplication with other present disclosure requirements. Succeeding project phases will feature compensation and governance information contained within proxy statements.
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Topics: Audit, Capital Markets, Division of Corporation Finance "Corp Fin", Financial Accounting Standards Board "FASB", financial services, Government Sponsored Enterprises, Keith Higgins, U.S. House of Representatives, U.S. Securities and Exchange Commission "SEC"