SEC Revises Disclosure Requirements With Respect to Description of Business, Legal Proceedings and Risk Factors
On August 26, 2020, the SEC adopted rule amendments modernizing the description of business, legal proceedings and risk factor disclosures that public companies are required to make in their SEC filings. The amendments largely track the SEC’s rule proposal from August 2019 following the SEC’s mandated Regulation S-K study and related disclosure effectiveness initiative. Companies should be aware that, in their upcoming Forms 10-K, they will be required to evaluate whether to include discussion of human capital resources and material government regulation, to the extent not already provided. In addition, companies will need to assess whether a risk factor summary is necessary or otherwise modify their risk factor disclosure in response to the new rules.