In a joint statement in response to the SEC’s proposed changes to Regulation S-K, Commissioners Robert Jackson and Allison Herren Lee expressed some concerns about the move toward principles-based requirements and advocated for more requirements to disclose climate risk.
The SEC this month voted to propose rule amendments to modernize the description of business, legal proceedings, and risk factor disclosures that registrants are required to make under Regulation S-K. The proposed amendments would revise Items 101(a) (description of the general development of the business); 101(c) (narrative description of the business); and 105 (risk factors) “to emphasize a more principles-based approach, because businesses differ in terms of which aspects of these disclosures are material to them,” the SEC said.
