When the SEC’s Reg Flex Agenda was published a few weeks ago, John pointed out the somewhat cryptic item of “Rationalization of Disclosure Practices.” Yesterday afternoon, in remarks at the “Financial Markets Quality Conference” at Georgetown, SEC Chair Paul Atkins gave a clearer glimpse into which disclosures could be on the chopping block. This Bloomberg Law article recaps:

Companies sometimes spend several pages discussing risk factors in their annual 10-K reports to meet Securities and Exchange Commission requirements, confusing investors about what’s important, Atkins told reporters at a Georgetown University conference. Firms have risk-averse lawyers who “dump the kitchen sink in,” the Republican said.

“It’s become a repository for too much,” Atkins said. “It’s not serving investors well.”

• The SEC during the first Trump administration required companies to have a risk factor summary of no more than two pages in their 10-Ks, if their reports discussed risks for more than 15 pages.

• Atkins said Thursday the agency also is looking to change rules for companies’ executive compensation reporting to ensure they provide “material” information to investors.

• The SEC’s work to update disclosure rules will happen during the “coming months and years,” the chairman said, without offering more specifics.

Like I said yesterday, the disclosure regime is only piece of the puzzle for public companies – but there is room for improvement!

Keep in mind that a government shutdown could slow down these ambitious rulemaking initiatives. That’s looking like a strong possibility right now – 77% of Polymarket bettors have their money on it as of the time of writing! – but there’s still some time to reach a deal. If there’s no continuing resolution or actual agreement soon, I’m sure John will share reminders next week from our previous editions of “The Government Shutdown Blues” – and color on how things could be different this time around.

– Liz Dunshee