[Congressional Record Volume 164, Number 116 (Wednesday, July 11, 2018)]
[House]
[Page H6046]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      FINANCIAL DISCLOSURE REVIEW

  The SPEAKER pro tempore. The Chair recognizes the gentlewoman from 
Missouri (Mrs. Wagner) for 5 minutes.
  Mrs. WAGNER. Mr. Speaker, the Securities and Exchange Act of 1934 
requires most SEC registrants to file a form 10Q quarterly report with 
the SEC. The form 10Q includes condensed financial information and 
other data prepared by a company and reviewed by independent auditors.
  Although technology has evolved rapidly over the years, the form 10Q 
used today was adopted in 1950. My legislation, H.R. 5970, the 
Modernizing Disclosures for Investors Act, requires the Securities and 
Exchange Commission, the SEC, to report to Congress the costs and 
benefits of form 10Q and recommendations for decreasing costs while 
increasing transparency and efficiency of quarterly financial 
reporting.
  Specifically, my bill requires the SEC to look at emerging growth 
companies that are particularly susceptible to the burdens and 
complexities associated with current reporting requirements. In recent 
years, annual and quarterly reporting requirements have grown in size 
and complexity, making it more difficult for investors to determine 
relevant information, often leaving them overwhelmed and unable to make 
sound investment decisions.
  Furthermore, some companies believe that current reporting 
requirements have become a barrier to registering as publicly traded 
companies, as noted by a 2011 report by the IPO Task Force. The report, 
which was prompted by the JOBS Act of 2012, found that 92 percent of 
public company leaders said that the administrative burden of public 
reporting was a significant challenge to completing an IPO and becoming 
a public company.
  Finally, I would like to note that my legislation is timely. At a 
recent SEC oversight hearing, Chairman Clayton highlighted in his 
testimony that: ``We should regularly review whether we have disclosure 
requirements that are outdated, duplicative, or can otherwise be 
improved.''
  In addition, just last week, the SEC finalized a rule expanding the 
definition of smaller reporting companies, which will allow them to be 
eligible for scaled disclosures.
  Before I conclude, I want to take a minute to thank Congressman 
Gottheimer for his willingness to work across the aisle and to get this 
bill to the finish line. With the passage of H.R. 5970 just last 
evening, we have provided yet another example of how Congress can work 
together in a bipartisan manner.

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