On September 11, the U.S. Securities and Exchange Commission (SEC) announced the adoption of rules to update and expand the disclosures that banking registrants provide to investors. The new rule has been long in the making. This is the first substantive change to the statistical disclosure requirements for financial institutions in more than three decades. Nearly one year ago, Troutman Pepper published an alert discussing the SEC’s initial proposal, which has led to today’s final rule. Importantly, the SEC is eliminating Industry Guide 3, Statistical Disclosure by Bank Holding Companies and replacing it with updated disclosure requirements in a new subpart 1400 of Regulation S-K.
The new rules reflect the significant financial reporting changes that have taken place for banking registrants since the SEC last updated Industry Guide 3, including the issuance of new accounting standards. The new rules apply to bank holding companies, banks, savings and loan holding companies, and savings and loan associations. The key provisions of the new rules require disclosure about the following:
The new rules become effective 30 days after publication in the Federal Register and will apply to fiscal years ending on or after December 15, 2021. However, the SEC will accept voluntary compliance in advance of the mandatory compliance date. Industry Guide 3 will be rescinded effective January 1, 2023. A complete copy of the new rules is available here: https://www.sec.gov/rules/final/2020/33-10835.pdf.