SEC Postpones Final Rule on Share Buyback Disclosures

The SEC announced that it has postponed the effective date of its final rule on share buyback disclosures (issued on May 3, 2023) and has released an order staying the rule. The Commission indicated that it was unable to cure the final rule’s defects within the 30-day period granted by the U.S. Court of Appeals for the Fifth Circuit on October 31, 2023. (The SEC’s request for an extension of this period was denied by the court on November 26, 2023.) The court has not yet decided whether to vacate the rule. The rule will not become effective unless the SEC takes further action.