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SEC Chief Accountant Credits Interpretive Guidance for Curbed Misuse of Non-GAAP Measures

Securities and Exchange Commission (“SEC”) Chief Accountant Wesley Bricker is crediting the reduced misuse of non-GAAP measures to the Compliance and Disclosure Interpretations (“C&Dis”) issued in May 2016. Bricker said the interpretive guidance for Regulation G, regulation covering non-GAAP financial information, has helped companies become better disciplined and disclose to investors the use of non-GAAP measurements. Bricker spoke on the C&DIs in October at the National Association of Corporate Directors’ Global Board Leader’s Summit. He remarked that since the C&DIs were issued, public companies have quit highlighting non-GAAP measures more predominately than their audited results. Companies have also established policies. Read More.

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SEC to Offer Hurricane Victims Regulatory Relief

Announced in a September 28 news release, the Securities and Exchange Commission (“SEC”) will provide regulatory relief to publicly traded businesses, investment companies, municipal advisors and others impacted by Hurricanes Harvey, Irma and Maria and their aftermaths. Property loss, power outages, and the lack of transportation and mail delivery are creating compliance issues for some individuals and companies. As a result, the SEC will conditionally exempt those affected by the hurricanes from certain provisions of the federal securities laws for periods following the storms. Additionally, the SEC extended the filing deadlines for specified reports and forms that entities must file in accordance with Regulation Crowdfunding and Regulation. Read More.

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Government-Business Forum on Small Business Capital Formation Announced

Next month, the Securities and Exchange Commission (“SEC”) and the Herb Kelleher Center for Entrepreneurship, Growth, and Renewal at the McCombs School of Business at The University of Texas at Austin (“UT Austin”) are co-hosting the annual Government-Business Forum on Small Business Capital Formation. Scheduled for Thursday, November 30 at UT Austin’s AT&T Executive Education and Conference Center, the annual forum will highlight ways to improve small business capital formation and focus on whether unnecessary, repetitive, or dated regulations should be eliminated or amended. The forum’s morning session will feature a panel discussion addressing how capital formation options are working. Read More.

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SEC Introduces Initiatives for Cyber Threats and Retail Investors

Building on its Enforcement Division’s efforts to counter cyber-based threats and safeguard retail investors, the Securities and Exchange Commission (“SEC”) announced on September 25 the creation of the following two initiatives: Cyber Unit: Using the Enforcement Division’s cyber expertise, the new Cyber Unit will target misconduct concerning market manipulation schemes featuring false information distributed electronically and through social media; hacking to acquire private information; and violations related to distributed ledger technology and initial coin offerings. Retail Strategy Task Force: With the Enforcement Division experiencing long-term success at bringing cases such as the sale of unsuitable structured products and microcap pump-and-dump schemes, the Retail Strategy Task Force will create proactive,. Read More.

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SEC Chairman Clayton Testifies on 2016 Cybersecurity Breach

After announcing on September 20 that the Securities and Exchange Commission’s (“SEC”) computers were breached last year , SEC Chairman Jay Clayton recently provided additional details on the cybersecurity intrusion to the Senate Committee on Banking, Housing and Urban Affairs. During his September 26 testimony, Clayton expressed his concerns over the 2016 breach involving the SEC’s Electronic Data Gathering And Retrieval filing system. He noted that the breach will cause many to pay close attention to the SEC’s approach to cybersecurity, and whether the agency is taking the proper steps to appropriately address its cyber risk. Clayton also reiterated that the SEC’s review and investigation of the matter are. Read More.

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