27 Feb 2025
⚖️SEC Notice on Reporting Evidence of Material Violations
Proposed Collection; Comment Request; Reinstatement Without Change: Reports of Evidence of Material Violations
Summary
The Securities and Exchange Commission seeks comments on the reinstatement of an information collection requirement for attorneys regarding material violations by issuers. This involves compliance protocols, potentially impacting governance procedures and the ethical conduct of legal professionals within the securities field.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The text outlines compliance and regulatory requirements concerning attorneys' reporting obligations on material violations per SEC rules. It highlights the burden of establishing Qualified Legal Compliance Committees (QLCC), which could involve significant costs (approximately $242,200 annually), impacting business operations and governance structures.