The Holding Foreign Insiders Accountable Act mandates disclosures by directors, officers, and principal stockholders, overriding conflicting regulations and requiring the SEC to enforce these changes within 90 days.
John Kennedy
Senator
LA
The Holding Foreign Insiders Accountable Act mandates that directors, officers, and principal stockholders disclose specific information, amending Section 16(a)(1) of the Securities Exchange Act of 1934. It invalidates conflicting regulations and requires the SEC to issue final regulations within 90 days to enforce these changes.
"Holding Foreign Insiders Accountable Act" Mandates New Disclosures from Company Directors, Officers, Major Stockholders
This proposed legislation, titled the "Holding Foreign Insiders Accountable Act," zeroes in on corporate transparency. It directly amends Section 16(a)(1) of the Securities Exchange Act of 1934, requiring company directors, officers, and principal stockholders – the key insiders – to disclose specific information. The bill also explicitly overrides a potentially conflicting federal regulation (17 CFR 240.3a12-3(b)) to ensure these new disclosure requirements take precedence.
What does this mean in practice? The goal appears to be ensuring that those with significant influence or inside knowledge within publicly traded companies are providing clearer information about their holdings or transactions. While the direct impact falls on these corporate figures who will face updated reporting duties, the ripple effect targets market integrity. Think of it as tightening the rules for the people at the very top of major companies. The Securities and Exchange Commission (SEC) is tasked with translating this mandate into concrete rules, and they're given a tight 90-day deadline from the date of enactment to get those final regulations published.