SEC Proposes Rule Amendments to Modernize Beneficial Ownership Reporting

The Securities and Exchange Commission today announced that it proposed rule amendments governing beneficial ownership reporting under Exchange Act Sections 13(d) and 13(g). The proposed amendments would update those rules to provide more timely information to meet the needs of today's financial markets. "These amendments would update our reporting requirements for modern markets, reduce information asymmetries, and address the timeliness of Schedule 13D and 13G filings," said SEC Chair Gary Gensler. "Investors currently can withhold market moving information from other shareholders for 10 days after crossing the 5 percent threshold before filing a Schedule 13D, which creates an information asymmetry between these investors and other shareholders.The filing of Schedule 13D can have a material impact on a company's share price, so it is important that shareholders get that information sooner.