New SEC rules adopted in 2018 simplify certain disclosure requirements and amend the definition of smaller reporting company.
To promote capital formation by reducing compliance costs for smaller public companies, the SEC expands the pool of registrants that can take advantage of the scaled disclosure accommodations under SEC regulations.
As recommended by the SEC’s Advisory Committee on Small and Emerging Companies and the Forum on Small Business Capital Formation, the SEC has proposed expanding the pool of registrants that can take advantage of the scaled disclosure accommodations under SEC regulations.
The SEC has established four categories of filers with varying public float thresholds that are determined as of June 30 for reporting companies with calendar-fiscal years.
Smaller reporting companies and emerging growth companies can save time and money knowing which sections of their Form 10-K and annual proxy statement can be omitted under SEC rules.