SEC Implements Stricter Rules on Beneficial Ownership Reporting and Activist Investors

The Securities and Exchange Commission (SEC) has adopted rule amendments to enhance transparency and provide more timely information for shareholders and the market. The amendments update Regulation 13D-G, requiring market participants to provide more timely information on their positions. The changes include shortening the deadline for initial Schedule 13D filings from 10 days to five business days, accelerating filing deadlines for Schedule 13G beneficial ownership reports, clarifying disclosure requirements for derivative securities, and mandating the use of structured, machine-readable data language for filings. Compliance with the revised filing deadlines and structured data requirement will be required in 2024.