Last week, Corp Fin did some spring cleaning in the Rule 10b5-1 area by adding two new CDIs, revising 20 CDIs, and withdrawing three CDIs so they better jibe with the amendments to Rule 10b5-1 in 2022. Most of the changes are truly spring cleaning in nature – touch ups that don’t deal with much in the way of substance. But there are a handful …
How to Explain Section 16 to a Newbie
Given the hubbub over the SEC’s new EDGAR Next, I thought it would be useful to provide a FAQ explaining the rationale for Section 16 to a new director or officer who is unfamiliar with the concept. 1. What’s the primary purpose? The purpose goes all the way back to 1934 in the wake of the Great Depression. Congress included this provision in the Securities …
Crypto Shake-Up: Narrowing Risks, From Securities Scrutiny to Consumer Claims
Here’s the intro from this Cooley Alert penned by William Pao, Alexander Galicki, Michelle Doolin, Rodrigo Seira and Derek Colla: “Crypto is now in Washington’s good graces – or at least that’s how it may seem. The return of the Trump administration has injected new energy into the crypto asset space, with sweeping rhetoric about “unleashing innovation” and a flurry of early moves that suggest …
Texas Stock Exchange? Could Become a NYSE and Nasdaq Competitor
My mind was sort of blown when I read this recent press release saying that the Texas Stock Exchange (TXSE) had filed this Form 1 application to register as a national securities exchange. I was tripping because the TXSE was reported to be the first fully integrated exchange to file a registration in 25 years, which means that perhaps I was one of the last …
How to Correct Form 10-Q Mistakes
How do you handle a mistake in a Form 10-Q? That depends on the type of mistake it is – and sometimes, the level of the mistake’s materiality. Sometimes companies may feel the need to amend their Form 10-Q – and the reasons for doing so are all over the map. It could be as simple as forgetting a signature or an exhibit. Even an …
President Trump Directs Federal Agencies on How to Repeal ‘Unconstitutional’ Rules
Recently, I blogged about how Republican members of the House Committee on Financial Services sent this letter to the SEC asking it to retract a total of 14 adopted – and proposed – rules. In a related vein, President Donald Trump released this Presidential Memorandum last week, further implementing an executive order that was issued back on February 19th: Executive Order 14219, “Ensuring Lawful Governance …
Clawback Checkboxes on the Form 10-K Cover: Corp Fin Issues Six CDIs
A few months ago, we put out our own set of a dozen FAQs about the clawback checkboxes on the Form 10-K cover page in this blog. Now, Corp Fin has issued six CDIs on the topic. The new CDIs, which are set forth below, confirm the more informal Corp Fin guidance reflected in our prior blog and provide helpful clarifications regarding specific fact patterns. …
Paul Atkins Confirmed as New SEC Chair
Yesterday, the Senate confirmed Paul Atkins as the new SEC Chair. Acting Chair Mark Uyeda will continue at the SEC serving as a SEC Commissioner. Paul is a former SEC Commissioner, serving in that role from 2002 to 2008 and before that, worked at the SEC on the staff of then-SEC Chair Richard Breeden. So he is a rare incoming SEC Chair who is familiar …
Nasdaq’s Recommendations for a Better Capital Market
Last week, Nasdaq released this interesting paper that sets forth a set of recommendations to improve the capital markets. Nasdaq believes its recommendations not only come out at a critical time when policymakers have real concerns about the state of the public company model in the US, but also at a time when there is a real opportunity to change this dynamic. Among other …
Will the SEC Retract Its Cybersecurity Disclosure and Pay vs. Performance Rules?
Earlier this week, Republican members of the House Committee on Financial Services sent this letter to the SEC asking that it retract a total of 14 adopted – and proposed – rules. Among this list are two that Corp Fin ushered through the rulemaking process over the past few years: the cybersecurity disclosure rules and the pay-vs-performance rules. Interesting, the SEC’s climate disclosure rules are …