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.

About Faruqi & Faruqi, LLP

Faruqi & Faruqi focuses on complex civil litigation, including securities, shareholder derivative actions, merger litigation, antitrust, employment law, wage and hour, and consumer class actions.  The firm is headquartered in New York, and maintains offices in Delaware, Pennsylvania, California, and Georgia.

Since its founding in 1995, Faruqi & Faruqi has served as lead or co-lead counsel in numerous high-profile cases which ultimately provided significant recoveries to investors, consumers and employees.

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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.

Posted by Katherine M. Lenahan

Partner at Faruqi & Faruqi, LLP
New York Office
Tel: (212) 983-9330
Fax: (212) 983-9331
Email: klenahan@faruqilaw.com
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