SEC Eases Disclosure for Foreign Companies

The Securities and Exchange Commission on Wednesday loosened requirements for the information that foreign companies must disclose when they file to sell stocks and bonds in the United States.

In a move that brings it closer to standards endorsed by a global association of securities regulators last year, the SEC adopted a rule that will standardize the disclosure of business descriptions, results of operations, management and the securities a company plans to offer or list.

“We’re pleased we can use these standards in our disclosure forms without compromising the quality of information investors receive,” said Brian Lane, director of the SEC’s corporation finance division.

The standards will allow companies to use these disclosure rules to shape their core disclosure documents, which would be accepted in many countries with few changes to conform to national standards.

However, the SEC said the rule changes will not affect accounting requirements for financial statements, and it will continue to demand disclosure on market risk.

The changes will take effect Sept. 30, 2000.