Modernizing Disclosures for Investors Act

Bill: 115-s-3575
Sponsor: full_name: Sen. Rounds, Mike [R-SD]
Introduced: 2018-10-11
Policy area: Finance and Financial Sector
Latest action: action_date: 2018-10-11
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2018-10-11
action_desc: Introduced in Senate
text: <p><b>Modernizing Disclosures for Investors Act </b></p> <p>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. </p>

tv_txt: II 115th CONGRESS 2d Session S. 3575 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.

1. Short title This Act may be cited as the Modernizing Disclosures for Investors Act . 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.