The SEC last week issued a long-awaited proposal to update required disclosures that bank and savings and loan registrants are required to provide to investors. The proposal—which would replace Industry Guide 3—reflects significant changes to financial reporting that have taken place since the guide was last updated more than 30 years ago. Comments on the proposal will be due 60 days after publication in the Federal Register.
The American Bankers Association has long called on regulators to update Guide 3, and welcomed the SEC’s announcement. “Both bankers and investors have long complained that the current Guide 3 requirements are obsolete and thus, have often become irrelevant,” said ABA VP Josh Stein. “Further, changes from new accounting standards, including the CECL standard, beg for more guidance as to disclosure expectations. ABA looks forward to reviewing and commenting on the proposal with the intent of arriving at a robust—yet manageable—disclosure framework.”