Garrett visiting local businesses in Ridgewood
Garrett bill on SEC disclosure rules sails through House Streamlining Paperwork for Startup Companies
DECEMBER 3, 2014 LAST UPDATED: WEDNESDAY, DECEMBER 3, 2014, 12:02 AM
BY HERB JACKSON
WASHINGTON CORRESPONDENT |
The Securities and Exchange Commission would be required to simplify some of the disclosures that public companies must make under a bill sponsored by Rep. Scott Garrett that won unanimous approval in the House.
Garrett, R-Wantage, was one of the sponsors of a 2012 law intended to make it easier for startups to raise funds through financial markets, and the law included a section directing the SEC to study disclosure simplification.
On the House floor Tuesday, Garrett said the SEC produced a study in December 2013 that did not call for any changes but did call for more study.
“I believe we need to stop studying and start taking action,” Garrett said. “Simplifying and streamlining disclosure requirements will enable companies to divert fewer resources to compliance, freeing up additional capital to create American jobs.”
The Disclosure Modernization and Simplification Act, which was approved in a voice vote on Tuesday, directs the SEC to allow public companies to submit a summary page of annual reports on Form 10-K that cross references the contents of the report, Garrett said.
It also directs the SEC to revise Regulation S-K “to better scale disclosure rules for emerging growth companies and smaller issuers.”
Rep. Carolyn Maloney, D-N.Y., said the SEC’s 2013 report showed that the commission had studied ways to streamline disclosure in 1969, 1977, 1992, 1996 and 2007.
“What this history demonstrates is that the process of scaling and streamlining the reporting requirements for smaller companies is something that we all need to focus on in order to keep pace with the ever-evolving marketplace,” she said.