💼SEC Notice on Information Collection for Compensatory Benefit Plans
Agency Information Collection Activities; Submission for OMB Review; Comment Request; Extension: Rule 701-Exemption for Offers and Sales of Securities Pursuant to Certain Compensatory Benefit Plans and Contracts Relating to Compensation
Summary
The SEC issued a notice regarding the extension of information collection activities related to Rule 701, which exempts certain issuers from registration for offers and sales of securities tied to compensatory benefit plans. The extension emphasizes the importance of providing essential information to investors while streamlining the compliance process for businesses not under reporting obligations.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
This notice pertains to Rule 701, which provides exemptions for certain issuers from SEC registration requirements related to compensatory benefits. It impacts businesses by enabling them to compensate employees without extensive registration, thus reducing compliance burden and costs. The estimated annual cost burden of over $3.35 million reflects the financial implications for businesses using this exemption.