- The SEC is planning to adopt rules that revise the definition of “smaller reporting company” by the fall of 2018 and let more public companies submit regulatory filings with a lighter set of disclosures. A top SEC official suggested during a congressional hearing that the agency may also revise the threshold for compliance with the auditor attestation rules for internal controls over financial reporting.
- The SEC proposed updating its auditor independence rules to address situations in which auditors are borrowing funds or issuing debt to accumulate working capital. The SEC wants to update the rules to alleviate the compliance challenge accounting firms and audit clients face with the existing requirements.
- The SEC’s Enforcement Division issued staff guidance in the form of frequently asked questions (FAQs) to help investment advisers voluntarily report their violations of conflict-of-interest rules. The FAQs deal with the Share Class Selection Disclosure Initiative announced in February 2018 to address violations of the fiduciary rule for investment advisers.
- The SEC is planning to finish the rules requiring public companies to embed interactive data directly into their financial statement within the next 12 months, according to William Hinman, director of the Division of Corporation Finance. The market regulator proposed the rule in March 2017 in an effort to streamline public companies’ use of the eXtensible Business Reporting Language (XBRL).
- The SEC will not finish its work on the executive compensation rules from the Dodd-Frank Act for at least another six months, William Hinman, director of the SEC’s Division of Corporation Finance, told a House panel during a recent hearing. Hinman told lawmakers that the regulatory agency’s agenda is too busy for it to address the executive compensation rules during the foreseeable future.