The commission seeks public input on potential rule updates affecting foreign companies and investor transparency.
The U.S. Securities and Exchange Commission (SEC) recently issued a concept release seeking public feedback on whether the definition of a “foreign private issuer” should be updated. These companies currently receive certain regulatory exemptions under federal securities laws. Given the shifts in the number and profile of such companies since 2003, the commission is reviewing whether adjustments are needed to maintain a balance between attracting foreign listings and ensuring fair disclosure practices.
“Attracting foreign companies to U.S. markets and providing U.S. investors with the opportunity to trade in those companies under U.S. laws and regulations remains an objective. That objective must be balanced with other considerations, including providing investors with material information about these foreign companies, and ensuring that domestic companies are not competitively disadvantaged with respect to regulatory requirements.” said SEC Chairman Paul Atkins.
“The first step in striking this balance is to determine which foreign companies should qualify as foreign private issuers and be able to avail themselves to the accommodations that go with that status,” he added.
As the Lord Leads, Pray with Us…
- For Chairman Atkins to seek God’s guidance as he heads the SEC.
- For wisdom for SEC commissioners as they gather and review input on foreign private users with regard to investments
Sources: Securities and Exchange Commission
