Bills
| 3.23.22

Simplifying Required SEC Reports (H.R. 1525)

Do you support or oppose this bill?

What is H.R. 1525?

(Updated July 13, 2017)

This bill would allow companies issuing securities (like stocks and bonds) to submit a summary page that cross references information found their 10-K financial statement.

The Securities and Exchange Commission (SEC) would be required to revise regulation S-K, which covers the filing of financial statements, in order to:

  • Reduce the burden on small issuers of securities -- including emerging growth companies, accelerated filers, and smaller reporting companies.

  • Eliminate duplicative, overlapping, outdated, or unnecessary provisions.

This bill would also direct the SEC to study ways to modernize and simplify requirements in regulation S-K, and to evaluate better presentation methods while discouraging repetition and the inclusion of unnecessary information.

Argument in favor

Fast growing companies are unfairly burdened with these reporting requirements compared to larger competitors. Eliminating redundant filings saves time for both the companies submitting information and regulators.

Argument opposed

Congress has already told the SEC to get rid of repetitive regulations — it seems doubtful that the agency will have a change of heart and do their job just because of this bill.

Impact

Companies making 10-K or S-K filings with the SEC, the SEC.

Cost of H.R. 1525

A CBO cost estimate is unavailable.

Additional Info

In-Depth: According to Rep. Scott Garrett (R-NJ), this bill came about because of the SEC’s inaction on the issue of redundant filing requirements:

“As part of the JOBS Act, Congress directed the SEC to review its existing disclosure requirements and identify ways to make our current disclosure regime less burdensome for issuers and more useful for investors, but the agency has yet to act.”

This bill was passed on a unanimous, bipartisan basis by the House Financial Services Committee through a 60 to 0 vote.


Media:

Summary by Eric Revell
(Photo Credit: "Domesday-book-1804x972" by Andrews, William - Andrews, William: “Historic Byways and Highways of Old England” (1900)[2]. Licensed under Public Domain via Commons)