SEC explores scaling down disclosure for small businesses
The US Securities and Exchange Commission (SEC) is considering changes to disclosure requirements for small businesses, with an eye toward reducing compliance burdens.
At the latest Small Business Capital Formation Advisory Committee meeting, Acting Chairman Mark T. Uyeda highlighted the challenges faced by smaller firms and unlisted public companies, suggesting that “scaled disclosure” could be a way to ease regulatory pressures while still ensuring investor protection.
A more tailored approach to disclosure could help smaller companies navigate compliance more efficiently. However, investors rely on clear, structured reporting to assess risks—especially when dealing with smaller, less liquid companies. Uyeda acknowledged these concerns and invited further discussion on how to strike the right balance. It’s also worth noting that tagged disclosures with digital structured data adds only a minimal time burden while making the resulting data usable for investors and regulators alike.
This discussion builds on past SEC efforts to refine disclosure requirements, and it’s an area to watch closely this coming year. Regardless of the route the SEC takes, ensuring that any adjustments continue to support market transparency and efficiency will be key.
Stay tuned for further developments – and read Uyeda’s statement here.
