September 26, 2018

Today: “15th Annual Executive Compensation Conference”

Today is the “Say-on-Pay Workshop: 15th Annual Executive Compensation Conference”; yesterday was the “Proxy Disclosure Conference” (for which the video archive is already posted). Note you can still register to watch online by using your credit card and getting an ID/pw kicked out automatically to you without having to interface with our staff. Both Conferences are paired together; two Conferences for the price of one.

How to Attend by Video Webcast: If you are registered to attend online, just go to the home page of or to watch it live or by archive (note that it will take about a day to post the video archives after it’s shown live). A prominent link called “Enter the Conference Here” – on the home pages of those sites – will take you directly to today’s Conference (and on the top of that Conference page, you will select a link matching the video player on your computer: HTML5, Windows Media or Flash Player). Here are the “Course Materials.”

Remember to use the ID and password that you received for the Conferences (which may not be your normal ID/password for or If you are experiencing technical problems, follow these webcast troubleshooting tips. Here is today’s conference agenda; times are Pacific.

How to Earn CLE Online: Please read these “FAQs about Earning CLE” carefully to see if that is possible for you to earn CLE for watching online – and if so, how to accomplish that. Remember you will first need to input your bar number(s) and that you will need to click on the periodic “prompts” all throughout each Conference to earn credit. Both Conferences will be available for CLE credit in all states except for a few – but hours for each state vary; see this “List: CLE Credit By State.”

Corp Fin Issues CDI on “Disclosure Simplification” Effectiveness

Last week, I blogged that it was unclear when the SEC’s new disclosure simplification rules become effective. Yesterday, Corp Fin resolved that issue with this new CDI:

Question 105.09: On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification. The amendments will become effective 30 days after publication in the Federal Register. Among the amendments is the requirement to presentthe changes in shareholders’ equity in the interim financial statements (either in a separate statement or footnote) in quarterly reports on Form 10-Q. Refer to Rules 8-03(a)(5) and 10-01(a)(7) of Regulation S-X. When are filers expected to comply with this new requirement?

Answer: The amendments are effective for all filings made 30 days after publication in the Federal Register. In light of the anticipated timing of effectiveness of the amendments and expected proximity of effectiveness to the filing date for most filers’ quarterly reports, the staff would not object if the filer’s first presentation of the changes in shareholders’ equity is included in its Form 10-Q for the quarter that begins after the effective date of the amendments. For example, assuming an effective date of October 25, a December 31 fiscal year-end filer could omit this disclosure from its September 30, 2018 Form 10-Q. Likewise, a June 30 fiscal year-end filer could omit this disclosure from its September 30, 2018 and December 31, 2018 Forms 10-Q; however, the staff would object if it did not provide the disclosures in its March 31, 2019 Form 10-Q. (Sept. 25, 2018)

So the Staff says that although the new rules apply to any filings after the effective date, companies can hold off one quarter on the “Statement on Stockholders Equity.” That’s good news, as this Gibson Dunn blog notes, companies with 12/31 fiscal year ends will be able to wait to make the new disclosure until after their 3rd quarter 10-Q. And no, the rules haven’t been published in the Federal Register yet…

SEC Charges 5 Companies With Foregoing 10-Q Auditor Review

Last week, the SEC charged five companies with failing to have their independent auditors review their 10-Q interim financials. This is the first time the SEC has brought enforcement actions for violations of the Regulation S-X interim review requirement – and resulted from a review of filings, Corp Fin comment letters and other metrics that indicated potential violations. Each company agreed to settle the SEC’s charges, with the agency collecting a total of $250k in penalties.

Corp Fin’s New Edgar Guidance for ABS

Recently, Corp Fin issued this set of 12 FAQs for Edgar filings by asset-backed issuers…

Broc Romanek