NIRI Conference Kicks Off…

Posted by: AmberRoberts in: Financial Services -

Day One:  Monday, June 7:

Update from Corp Finance Division of the SEC:
“Notice & Access” Disclosure Process Remains Up for Debate

The annual NIRI conference officially opened today with more than 1,200 members convening in San Diego. To start this morning, Meredith Cross of the Corporate Finance Division of the SEC gave the group an update on the SEC’s focus right now in terms of enforcement changes and investor protection.

In brief summary:
• Proxy issues, or “Proxy plumbing” –  As this issue prevails, Ms. Cross reports the SEC is currently seeking solutions and will address NOBO/OBO, share lending, the best way for investors to have proxy access, accuracy of elections, etc.
• Disclosure requirements – In general some of these are 30 years old. The SEC is examining those requirements that may be antiquated and will be proposing updates.
• Notice & Access – In short, the ability for a company to inform the public of earnings and other material disclosures via its website (versus paid release over the wire). Is this being utilized broadly and is it working? Ms. Cross emphasized that investor feedback in particular should be considered here, as some have expressed dissatisfaction with how they are learning about such disclosures.

On this topic, just last month a NIRI survey revealed that Senior NIRI members found SEC guidance on corporate website use [as a means of material disclosure] too vague to be actionable. The overall conclusion of the survey suggests that respondents often view additional communications channels as supplemental to traditional channels rather than replacements for them.

See more on the NIRI survey findings here: http://mob.niri.org/Main-Menu-Category/resource/publications/Executive-Alert/Use-of-Non-Traditional-Disclosure-Channels-52710.aspx

Want More?


Interested in working together? Get in touch to learn more about our services.