Applying a principles-based approach to disclosing complex, uncertain and evolving risks
Mar 15, 2019
On March 15, 2019, the Securities and Exchange Commission (SEC) published a speech by William Hinman, Director of the Division of Corporation Finance, given at the 18th Annual Institute on Securities Regulation in Europe.
In his speech, Mr. Hinman discussed how the U.S. securities disclosure requirements, which are largely principles-based, apply in areas where the disclosure topics may be complex, associated with uncertain risks and rapidly evolving. The flexibility of principles-based disclosure requirements should result in disclosure that keeps pace with emerging issues, like Brexit or sustainability matters, without the need to for the SEC to continuously add to or update the underlying disclosure rules as new issues arise.
Review the full speech on the SEC's website.