The Securities and Exchange Commission has announced that public companies that do not adhere to disclosure requirements will incur penalties beginning in January 2025.
The SEC observed that although numerous public companies file their periodic reports with the Commission and appropriate securities exchanges, they frequently fail to post these documents concurrently on their official websites, breaching Rules 39 and 41 of the SEC’s guidelines.
The SEC emphasized the significance of this mandate, declaring that “the key aim of obligating companies to display their periodic returns on their websites is to guarantee uninterrupted public access to vital information.”
This initiative seeks to support investors in making well-informed choices and to enhance transparency and efficiency in financial markets.
The Commission emphasized that “prompt and available disclosures are essential for promoting robust shareholder engagement and sustaining market trust.”
The reminder acted as a prompt for businesses to consider this duty not merely as a regulatory mandate but as a fundamental aspect of responsible corporate governance.
Furthermore, the SEC stated that “by providing investors and the public with straightforward access to this information, companies help to enhance the overall stability and integrity of the market.”
Beginning in January 2025, firms that do not submit periodic returns to the SEC and pertinent securities exchanges, while also failing to publish those returns on their websites, will incur penalties.
The SEC encouraged firms to assess their procedures and implement the required actions to comply with the regulations to prevent fines.
