On May 3, 2023, the U.S. Securities and Exchange Commission (SEC), by a 3-2 vote, adopted rule amendments to require more detailed disclosure surrounding repurchases of an issuer’s registered equity securities, often called buybacks. The final rules require issuers to disclose a table of daily quantitative share repurchase information in quarterly or semi-annual reports. This periodic reporting of repurchase activity is a welcome change from the rule proposal, which contemplated next-day reporting of buybacks. The final rules also require narrative disclosure in periodic reports about an issuer’s repurchase programs and practices and details about an issuer’s adoption and termination of Rule 10b5-1 trading arrangements.
Please click here to read the Sidley Update.
Sidley Austin LLP provides this information as a service to clients and other friends for educational purposes only. It should not be construed or relied on as legal advice or to create a lawyer-client relationship. Readers should not act upon this information without seeking advice from professional advisers.
Attorney Advertising—Sidley Austin LLP, One South Dearborn, Chicago, IL 60603. +1 312 853 7000. Sidley and Sidley Austin refer to Sidley Austin LLP and affiliated partnerships, as explained at www.sidley.com/disclaimer.
© Sidley Austin LLP