SEC Chairman Calls For More Detailed Brexit Disclosures
The Wall Street Journal reports that Jay Clayton, Chairman of the United States Securities and Exchange Commission (“SEC”), recently told company controllers and accountants during a conference that the SEC “is sharpening its focus on corporate disclosures about the risks associated with the U.K.’s exit from the European Union.”
The U.K is currently scheduled to leave the EU on March 29, 2019. Companies have been preparing for the divorce from the EU by, inter alia, “stocking up on raw materials,” planning to shut down factories, and “reviewing their financial arrangements to determine whether they will need to relocate syndicated loans and various derivatives currently booked through London to Europe.”
While Brexit is likely to affect some industries and companies more than others, Mr. Clayton noted that “there is a range of detail in Brexit-related disclosures among companies in the same industry.” According to Mr. Clayton, “the potential impact of Brexit has been understated,” and he wants to see more detailed disclosures from companies on Brexit’s impact.
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About Katherine Lenahan
Katherine Lenahan’s practice is focused on securities litigation. Katherine is a partner in the firm’s New York office.