H.R. 5970 — what changed
Modernizing Disclosures for Investors Act
From Introduced in House to Reported in House. 2 sections amended between Introduced in House and Reported in House.
Section 1 Short title
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This Act may be cited as the “Simplifying “Modernizing Disclosures for Investors Act”.
Sec. 2 Form 10-Q analysis
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In general— Not later than one year after the date of enactment of this Act, the The Securities and Exchange Commission shall issue such rules as the Commission determines may be necessary or appropriate in the public interest or for the protection conduct an analysis of investors to allow issuers the costs and benefits of securities traded on a national securities exchange to elect requiring reporting companies to disclose use Form 10-Q for submitting quarterly financial information in a simplified manner, such as through a press release or by a shortened form. In issuing such disclosure rules, the Commission shall—reports. Such analysis shall consider—
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amend rules issued pursuant to sections 13(a) and 15(d) of the Securities Exchange Act of 1934 to permit issuers costs and benefits of securities traded on a national securities exchange to disclose quarterly financial information in a manner other than through filing a Form 10–Q;10-Q to emerging growth companies;
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require financial statements disclosed pursuant to such rules to include a quarterly income statement, a balance sheet as of the last day of the quarter, costs and a statement benefits of operations, all prepared in accordance with such rules as Form 10-Q to the Commission may adopt consistent with this Act;in terms of its ability to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation;
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not provide any exemption with respect to the requirements of section 302 costs and benefits of Form 10-Q to other reporting companies, investors, market researchers, and other market participants, including the Sarbanes-Oxley Act of 2002 costs and section 1350 of title 18, United States Code; andbenefits associated with—
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the public availability of the information required to be filed on Form 10-Q;
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the use of a standardized reporting format across all classes of reporting companies; and
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the quarterly disclosure by some companies of financial information in formats other than Form 10-Q, such as a quarterly earnings press release;
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require that such disclosures include a statement of any material changes in financial condition or results of operations since the end costs and benefits of the issuer’s most recent financial statements disclosed pursuant alternative formats for quarterly reporting for emerging growth companies to emerging growth companies, the Commission’s rules.Commission, other reporting companies, investors, market researchers, and other market participants; and
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the expected impact of the use of alternative formats of quarterly reporting by emerging growth companies on overall market transparency and efficiency.
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Definitions—Report required— For purposes Not later than 180 days after the date of enactment of this section:Act, the Commission shall issue a report to Congress that includes—
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National securities exchange— The term “national securities exchange” means an exchange registered as a national securities exchange pursuant to section 6 of the Securities Exchange Act results of 1934.the analysis required by subsection (a); and
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Other terms— The terms “Commission”, “issuer”, recommendations for decreasing costs, increasing transparency, and “security” have the meaning given those terms, respectively, under section 3 of the Securities Exchange Act increasing efficiency of 1934.quarterly financial reporting by emerging growth companies.