SEC adopts interim amendments on submission and disclosure

The United States Securities and Exchange Commission has adopted interim final amendments to implement mandated submission and disclosure requirements of the Holding Foreign Companies Accountable Act, according to its official website.

Before any company would be compelled to comply with the interim final amendments, however, the SEC needs to finalize the rules. In the interim, the SEC is seeking public comment.

The HFCA Act was passed by the US Senate on May 20 and became law on Dec 18, 2020.

The legislation requires US-listed foreign companies to open their books to the Public Company Accounting Oversight Board－the organization that oversees the audits of US-based public companies.

Companies that are unable to meet this requirement for three consecutive years would be barred from US stock exchanges. Meanwhile, foreign companies also are required to certify that they are not owned or controlled by a foreign government.