US Securities And Exchange Commission Proposes Rules For Hedging Disclosure

On February 9, 2014, the US Securities and Exchange Commission ("SEC") approved the issuance of amendments that would increase corporate disclosure of company hedging policies for directors and employees. The proposed rules, mandated by the Dodd-Frank Act, would require directors, officers and other employees to disclose any hedges or offsetting transactions which would decrease their exposure to equity securities granted by the company as compensation or held, directly or indirectly, by directors or employees.

According to the SEC, the proposed rules, if finalized as proposed, would enhance transparency into corporate governance practices and provides additional information to investors to understand the alignment of employee/directors interests with shareholder interests.