SEC Proposes Updates to Registrant Disclosures

The SEC has proposed changes to Industry Guide 3, Statistical Disclosure by Bank Holding Companies. First published in 1976, the changes update required disclosures financial institution registrants provide to investors and eliminate disclosures that overlap with Commission rules, U.S. GAAP or IFRS. The proposed changes would apply to bank holding companies, banks, savings and loan holding companies, and savings and loan associations.

The proposed changes would require disclosures in these areas:

  • Distribution of assets, liabilities and stockholders’ equity, the related interest income and expense, and interest rates and interest differential
  • Weighted average yield of investments in debt securities by maturity
  • Maturity analysis of the loan portfolio including the amounts that have predetermined interest rates and floating or adjustable interest rates
  • An allocation of the allowance for credit losses and certain credit ratios
  • Information about bank deposits including amounts that are uninsured

The proposed rule notes that “as the operations of bank holding companies have diversified, it has become increasingly difficult for investors to identify the sources of income of such companies.” The changes are part of a Division of Corporate Finance initiative to help investors compare BHCs and assess their future earnings potential by requiring the disclosure of the same statistical information on a regular, periodic basis. The changes also take into account significant financial reporting changes and new accounting standards that have been implemented since the Guide was first introduced more than 30 years ago. 

The comment period closes on December 2, 2019.

Read the proposed changes

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