SEC reopens comment period on beneficial ownership proposal


The Securities and Exchange Commission (SEC) on Friday reopened the comment period on proposed changes to “modernize” its beneficial ownership rule.

The agency said the new deadline for comments will be through at least June 27 and is intended to give the public time to review a newly released memorandum by the SEC’s Division of Economic and Risk Analysis on the potential economic impact of the proposed rule changes.

The SEC’s proposal, released in February 2022, would expand the rule to include certain types of derivative securities and shorten the filing deadline for beneficial ownership from 10 days to five days after a new ownership party crosses the 5 percent threshold. It also would require amendments related to beneficial ownership be filed within one business day.

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