The SEC is reviewing the benefit of revisions to “Industry Guide 3,” which has since the 1970s governed certain disclosures by publicly-traded BHCs and, pursuant to SEC staff guidance, also to any other publicly-traded company with significant lending and deposit activities. The new framework could not only change the specifics of the disclosures now required of these companies, but also expand filing firms to a broader array of financial-services companies. The SEC is undertaking this full-scope review of Guide 3’s content and application because of the structural changes in both BHCs and the financial-services industry since the rules were formulated. Over this period, the federal banking agencies have also dramatically expanded not only their rules, but also an array of disclosures related to them and to other financial-market developments. There is thus considerable difference between the filings designed for investors and those focusing on safety and soundness even though many data points are relevant to each perspective. The manner in which these reporting requirements are changed, the way in which they related to those demanded by the banking agencies, and the extent to which they are applied to a broader range of financial companies will determine their impact.
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