SEC Adopts Final Rule to Modernize MD&A and Related Financial Disclosures

As part of a broader effort to modernize, simplify and enhance securities regulation, the U.S. Securities and Exchange Commission (SEC) has adopted several changes to Regulation S-K, Management’s Discussion and Analysis, Selected Financial Data and Supplementary Financial Information. The amendments are intended to eliminate duplicative disclosures and enhance management analysis for the benefit of investors, while simplifying compliance efforts for registrants.

This article summarizes the changes and explains why pre-IPO companies should be mindful of them as they prepare their IPO readiness checklist.