SEC Chairman Paul Atkins Discusses Disclosure Reform and Modernization Efforts on “Material Matters” Podcast

In the May 12 episode of the SEC’s Material Matters podcast, SEC Chairman Paul Atkins and Division of Corporation Finance Director Jim Moloney discussed the SEC’s ongoing efforts to modernize disclosure requirements and re-evaluate longstanding reporting frameworks.  To this end, Director Moloney discussed the SEC’s recent proposal to allow public companies to file semi-annual disclosure on new Form 10-S in lieu of quarterly reports on Form 10-Q to meet their interim reporting obligations under the Securities Exchange Act of 1934. More broadly, he emphasized that many SEC rules were developed decades ago and may no longer reflect current technologies, markets, or business practices.  He compared the accumulation of disclosure requirements to “30 coats of paint on a banister,” suggesting that disclosure obligations have evolved in a way that does not promote clear disclosure to investors. Director Moloney emphasized the importance of refocusing disclosure requirements on materiality and the information a reasonable investor would want to see, noting that companies may currently have excessive disclosure due to the fear of litigation or regulatory scrutiny.  He also highlighted the Division’s goal of being more receptive to issuer questions and helping market participants better understand how to comply with SEC requirements. 

While the discussion focused on public company disclosure, the discussion provides insight into the SEC’s broader regulatory philosophy, particularly the emphasis on revisiting longstanding requirements, improving clarity and reassessing whether existing disclosure obligations remain appropriately tailored. 

Click here for the May 12 episode and transcript of the SEC’s Material Matters podcast: Director Jim Moloney: Let the Free Markets be Free.