SEC dodges accelerated filer definitions

Author: John Crabb | Published: 12 Jul 2018

Markets participants are disappointed the Securities and Exchange Commission (SEC) didn’t address section 404(b) of the Sarbanes-Oxley Act of 2002, which looks at amendments to the accelerated filer and large accelerated filer definitions, in its last open meeting in June.

The SEC did however vote in favour of amendments to smaller reporting company (SRC) definitions, increasing the number of companies that can qualify for existing scaled disclosure accommodations.

Keith Higgins, chair of the securities & governance practice at Ropes & Gray, who was director of corporation finance at the SEC when the original rules were proposed, said that the outcome of the meeting was as expected, if perhaps slightly better.

But according to Anna Pinedo, partner at Mayer Brown, the decision to not address the threshold that triggers the auditor attestation of the SRC definitions was a disappointment. "I assumed that the SEC took as long as it had...