In a split decision, the Securities and Exchange Commission (SEC) has loosened requirements public companies must follow when they describe risk factors and legal proceedings in their financial statements.
The amendments to Regulation S-K, approved by the commission Wednesday a year after the changes were first proposed, signal an ongoing shift from a strict adherence to regulations to a more flexible, principles-based approach, the SEC said. Regulation S-K had not been revised in over 30 years.
