Title: Modernizing Disclosures for Investors Act
Policy area: Finance and Financial Sector

Summary:
Modernizing Disclosures for Investors Act
This bill directs the Securities and Exchange Commission to: (1) report on the costs and benefits of requiring reporting companies to use Form 10-Q to satisfy quarterly financial disclosure requirements; and (2) make recommendations for decreasing costs, increasing transparency, and increasing efficiency of quarterly financial reporting by emerging growth companies.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3575 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 3575

 To require the Securities and Exchange Commission to carry out a cost 
   benefit analysis of the use of Form 10-Q, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 11, 2018

  Mr. Rounds introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To require the Securities and Exchange Commission to carry out a cost 
   benefit analysis of the use of Form 10-Q, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Modernizing Disclosures for 
Investors Act''.

SEC. 2. FORM 10-Q ANALYSIS.

    (a) Definitions.--In this section--
            (1) the term ``Commission'' means the Securities and 
        Exchange Commission; and
            (2) the term ``Form 10-Q'' means the form described in 
        section 249.308a of title 17, Code of Federal Regulations, or 
        any successor regulation.
    (b) Requirement.--
            (1) In general.--The Commission shall conduct an analysis 
        of the costs and benefits of requiring reporting companies to 
        use Form 10-Q for submitting quarterly financial reports.
            (2) Considerations.--The analysis required under paragraph 
        (1) shall consider--
                    (A) the costs and benefits of Form 10-Q to emerging 
                growth companies;
                    (B) the costs and benefits of Form 10-Q to the 
                Commission with respect to the ability of the 
                Commission to protect investors, maintain fair, 
                orderly, and efficient markets, and facilitate capital 
                formation;
                    (C) the costs and benefits of Form 10-Q to other 
                reporting companies, investors, market researchers, and 
                other market participants, including the costs and 
                benefits associated with--
                            (i) the public availability of the 
                        information required to be filed on Form 10-Q;
                            (ii) the use of a standardized reporting 
                        format across all classes of reporting 
                        companies; and
                            (iii) the quarterly disclosure by some 
                        companies of financial information in formats 
                        other than Form 10-Q, such as a quarterly 
                        earnings press release;
                    (D) the costs and benefits of alternative formats 
                for quarterly reporting for emerging growth companies 
                to emerging growth companies, the Commission, other 
                reporting companies, investors, market researchers, and 
                other market participants; and
                    (E) the expected impact of the use of alternative 
                formats of quarterly reporting by emerging growth 
                companies on overall market transparency and 
                efficiency.
    (c) Report Required.--Not later than 180 days after the date of 
enactment of this Act, the Commission shall submit to Congress a report 
that includes--
            (1) the results of the analysis required under subsection 
        (b); and
            (2) recommendations for decreasing costs, increasing 
        transparency, and increasing efficiency of quarterly financial 
        reporting by emerging growth companies.
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