Defining Issues | March 2020
SEC updates required disclosures for companies that issue, guarantee or collateralize registered securities.
SEC adopts rule amendments to streamline disclosures and encourage issuers to conduct registered debt offerings. Here we summarize the changes to disclosures for issuers and guarantors of guaranteed securities and affiliates whose securities collateralize issuers’ securities (S-X Rules 3-10 and 3-16, respectively).
SEC Release No. 33-10762; 34-88307; File No. S7-19-18
The SEC adopted final rules amending Rules 3-10 and 3-16 of Regulation S-X and creating new Article 13 to improve the financial disclosure requirements for guarantors and issuers of guaranteed securities and affiliates whose securities collateralize issuers’ securities.
The rules are also intended to reduce the cost of compliance for issuers and encourage companies to offer guaranteed or collateralized securities on a registered basis.
The amendments to Rule 3-10 (not exhaustive):
The amendments to Rule 3-16 (not exhaustive):
SEC rules affect financial disclosures of certain registered debt instruments
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