USA: SEC adopts enhanced disclosure rules

The Securities and Exchange Commission yesterday approved amendments which will require public companies to make greater disclosure regarding: remuneration policies and practices that present material risks to the company; stock and option awards of executives and directors; director and nominee qualifications; board structure; the board’s role in risk oversight; and potential conflicts of interest of remuneration consultants advising companies and their boards.

The amendments will apply to proxy and information statements, annual reports and registration statements under the Securities Exchange Act (1934) and registration statements under the Securities Act (1933) as well as the Investment Company Act (1940). The new rules will be effective from 28 February 2010. See here for a more detailed overview of the new rules.