The SEC has announced that the staff will host a roundtable this summer on important topics such as the short-term / long-term management of public companies and related periodic reporting and regulatory requirements.
The SEC’s four-year strategic plan highlights its focus on the long-term interests of Main Street investors. In its roundtable announcement, the SEC stresses the dual needs of Main Street investors – liquidity to pay for retirement and other expenses while at the same time long-term value to fund increasing longer lifespans – and how disclosure rules should reflect and foster these needs. The SEC questions whether the current disclosure framework and other regulations have encouraged companies and certain investors to prioritize short-term over long-term results.
While the particulars (e.g., date, time, agenda and participant list) have not been finalized, the SEC staff anticipates publishing the roundtable agenda shortly. In the meantime, Chairman Jay Clayton has asked the staff to consider the following topics as it develops the agenda:
- Whether the focus on short-term results discourages companies from becoming public;
- How to further balance the informational needs of long-term investors against the disclosure burdens on companies; and
- Whether smaller reporting companies and certain other registrant categories should be given greater flexibility in periodic reporting frequency.
Anyone who wishes to participate can contact the SEC staff at firstname.lastname@example.org. Written comments may be submitted electronically (via Internet submission form or email email@example.com) or by hard copy. Submitted comments will be made public and posted on the SEC’s website without change.