SEC Issues Proposal to Modernize Beneficial Ownership Reporting

The SEC has issued a proposed rule, Modernization of Beneficial Ownership Reporting. The proposed rule would:

• “Accelerate the filing deadlines for Schedules 13D and 13G beneficial ownership reports.”
• “Expand the application of Regulation 13D-G to certain derivative securities.”
• “Clarify the circumstances under which two or more persons have formed a “group” that would be subject to beneficial ownership reporting obligations.”
• “Require that Schedules 13D and 13G be filed using a structured, machine-readable data language.”

For more information, see the press release and fact sheet, as well as a statement by SEC Chair Gary Gensler and Commissioner Hester M. Peirce, on the SEC’s Web site.