Improving Disclosure for Investors Act of 2023

1/3/2024, 4:30 PM

Improving Disclosure for Investors Act of 2023

This bill requires the Securities and Exchange Commission (SEC) to propose and finalize rules to allow entities to deliver regulatory documents to investors electronically. The SEC must establish a mechanism for investors to opt out of electronic delivery and receive paper documents instead. If the SEC does not finalize rules within one year after enactment, the bill allows for electronic delivery of these documents.

Bill 118 hr 1807, also known as the Improving Disclosure for Investors Act of 2023, aims to enhance transparency and accountability in the financial markets by requiring companies to provide more detailed and timely information to investors. The bill focuses on improving the disclosure of financial information, such as earnings reports, risk factors, and executive compensation.

One key provision of the bill is the requirement for companies to disclose any material events or information that could impact their financial performance within four business days. This is intended to ensure that investors have access to up-to-date and relevant information to make informed investment decisions.

Additionally, the bill mandates that companies provide more detailed information about their executive compensation practices, including the ratio of CEO pay to median employee pay. This is aimed at increasing transparency around executive compensation and ensuring that companies are held accountable for their pay practices. Overall, the Improving Disclosure for Investors Act of 2023 seeks to promote transparency and accountability in the financial markets by requiring companies to provide more detailed and timely information to investors. This is intended to empower investors to make informed decisions and ultimately strengthen the integrity of the financial system.
Congress
118

Number
HR - 1807

Introduced on
2023-03-27

# Amendments
0

Sponsors
+5

Cosponsors
+5

Variations and Revisions

12/1/2023

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Improving Disclosure for Investors Act of 2023

This bill requires the Securities and Exchange Commission (SEC) to propose and finalize rules to allow entities to deliver regulatory documents to investors electronically. The SEC must establish a mechanism for investors to opt out of electronic delivery and receive paper documents instead. If the SEC does not finalize rules within one year after enactment, the bill allows for electronic delivery of these documents.

Bill 118 hr 1807, also known as the Improving Disclosure for Investors Act of 2023, aims to enhance transparency and accountability in the financial markets by requiring companies to provide more detailed and timely information to investors. The bill focuses on improving the disclosure of financial information, such as earnings reports, risk factors, and executive compensation.

One key provision of the bill is the requirement for companies to disclose any material events or information that could impact their financial performance within four business days. This is intended to ensure that investors have access to up-to-date and relevant information to make informed investment decisions.

Additionally, the bill mandates that companies provide more detailed information about their executive compensation practices, including the ratio of CEO pay to median employee pay. This is aimed at increasing transparency around executive compensation and ensuring that companies are held accountable for their pay practices. Overall, the Improving Disclosure for Investors Act of 2023 seeks to promote transparency and accountability in the financial markets by requiring companies to provide more detailed and timely information to investors. This is intended to empower investors to make informed decisions and ultimately strengthen the integrity of the financial system.
Alternative Names
Official Title as IntroducedTo direct the Securities and Exchange Commission to promulgate rules with respect to the electronic delivery of certain required disclosures, and for other purposes.

Policy Areas
Finance and Financial Sector

Potential Impact
Business records
Computers and information technology
Corporate finance and management
Securities

Comments

Recent Activity

Latest Summary6/14/2023

Improving Disclosure for Investors Act of 2023

This bill requires the Securities and Exchange Commission (SEC) to propose and finalize rules to allow entities to deliver regulatory documents to investors electronically. The SEC mus...


Latest Action12/1/2023
Placed on the Union Calendar, Calendar No. 239.