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SEC proposes hedging disclosure requirements

  • SEC (US Securities and Exchange Commission) Image

Feb 09, 2015

The SEC has issued a proposed rule in response to a requirement in Section 955 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The proposal would enhance corporate governance by requiring registrants to disclose employee and director information that may affect shareholders’ interests.

Specifically, the proposal would require a registrant to disclose, in a proxy or information statement, whether “the registrant permits any employees (including officers) or directors of the registrant, or any of their designees, to purchase financial instruments (including prepaid variable forward contracts, equity swaps, collars, and exchange funds) or otherwise engage in transaction that are designed to or have the effect of hedging or offsetting any decrease in the market value of equity securities.”

Comments on the proposed rule are due 60 days after the date of its publication in the Federal Register. For more information, see the press release and proposed rule on the SEC’s Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.