SEC Proposes to Improve Disclosures Relating to Acquisitions and Dispositions of Businesses

The SEC has voted to propose rule amendments to improve the information that investors receive regarding the acquisition and disposition of businesses.  The proposed amendments are also intended to facilitate more timely access to capital and to reduce complexity and compliance costs of these financial disclosures.

“The proposed rules are, first and foremost, intended to ensure that investors receive the financial information necessary to understand the potential effects of significant acquisitions or dispositions,” said Chairman Jay Clayton.  “The staff’s work on the proposed rule amendments reflects years of experience.  Their work to eliminate unnecessary costs and burdens of the current rules – which in some cases have been significant and frustrated otherwise attractive transactions – while at the same time improving the disclosures investors receive should be applauded.”

The proposal will have a 60-day public comment period following its publication in the Federal Register.

Full details are available at The Securities Law Blog.