Ex-SEC Commissioners Blame Companies for Long Disclosures
As the U.S. Securities and Exchange Commission (“SEC”) continues its project on simplifying corporate disclosure requirements, two of the agencies’ former commissioners say companies shoulder some of the blame for the disclosures’ length. At a U.S. Chamber of Commerce conference on July 29th, ex-SEC head Cynthia Glassman commented that the documents are often more for protection from litigation than educating investors, especially if the disclosure is in electronic form. Glassman said if a company had an executive summary that could link to additional disclosures, then a lawsuit could be created since it was considered incomplete. While companies try to cover. Read More.