At a time when the markets are at their worst, the Securities and Exchange Commission, via its 21st Century Disclosure Initiative, is examining how to help investors understand companies’ detailed financial reports and the complex financial instruments being used today.
The Disclosure Initiative, established by SEC Chairman Christopher Cox, is designed to not only examine how well the SEC is using its current system, “but also guide our planning in addressing the insufficient transparency that is at the heart of today’s market problems,” Cox told attendees October 8 at the Commission’s roundtable discussion on modernizing the Disclosure Initiative. By the end of 2008, the SEC’s Disclosure Initiative hopes to issue a report that describes a modernized disclosure system and recommends future Commission action.