SEC Reopens Comment Period for Proposed Rule Amendments to Modernize Beneficial Ownership Reporting

The U.S. Securities and Exchange Commission (SEC) has published a press statement to announce the re-opening of its consultation on proposed amendments and additions to rules and regulations under the Securities Exchange Act of 1934 (17 CFR Part 240) primarily to enhance the reporting of beneficial ownership. The re-opening results from the availability of additional information as to the effects of the proposed enhanced reporting requirements on trading volumes prior to the report filing due dates and thereafter.
To recall, in the SEC’s corresponding draft, the Commission proposes to adjust the requirements on beneficial ownership reporting to
(a) reduce the time investors have to file the corresponding reports (Schedules 13D and 13G);
(b) require the filing of these reports in a structured, machine-readable data language;
(c) require such filing for certain derivative holdings; and
(d) „clarify the circumstances under which two or more persons have formed a “group” that would be subject to beneficial ownership reporting obligations“.
Please refer to EventID 14575 in this context for a detailed description of the proposed changes. This new consultation would remain open for public comments at least up to June 27, 2023 or for 30 days following the publication in the Federal Register, whichever is longer.