SEC Modernizes Foreign Issuer Rules, Proposes IFRS Roadmap

SEC adopts further rule changes to modernize foreign private issuer eligibility, disclosure and transaction requirements, and proposes roadmap for global accounting standards.

On August 27, 2008, the U.S. Securities and Exchange Commission (SEC) adopted rule changes to update and modernize disclosure and other requirements for foreign issuers in the U.S. markets. The rule changes are seen as the culmination of a significant project by the Staff of the Commission to provide greater accessibility to information about foreign issuers in light of technological changes and globalization of the securities markets. Amendments to existing rules focus on three main areas: (1) how a foreign issuer becomes subject to U.S. federal securities laws; (2) how foreign issuers report information to regulators, the markets and investors; and (3) how U.S. investors can participate in cross-border exchange and tender offers, as well as rights offerings.