Congress has demanded—and many associated with the Securities and Exchange Commission agree—that the burdensome and complex disclosure regime for companies and their offered securities must be fixed.
In many ways, demands to streamline regulatory disclosures found in the JOBS Act and FAST Act had corporate interests at heart. Fewer disclosures—or at least modernized ones stripped of redundancy and busy work—would certainly be less burdensome and costly for filers.
Investor advocates, among them Sen. Elizabeth Warren (D-Mass.) have balked at the suggestion that there is “investor overload” or that “less is more” when it comes to disclosures. Politics aside, one thing is made abundantly clear by academic research: Financial literacy is lacking and investors deserve to have disclosures that are meaningful and easily comprehended.
It was with investors’ needs in mind that the SEC held an “Evidence Summit” on March 10. Organized by the Office of Investor Advocate,... To get the full story, subscribe now.