SEC Rules Relating to Disclosure of Heding Policies

On July 1, 2019, SEC rules regarding the disclosure of hedging policies or practices became effective.  New Item 407(i) of Regulation S-K requires public companies to provide, among other items:

  • A summary of the company’s hedging policies or the full text of such policies;
  • The categories of hedging transactions that are either specifically allowed or disallowed;
  • The effect of hedging policies on all employees and directors; and
  • If no hedging policy is in effect, a statement that no such policy is in effect.

The new rule applies to proxy statements for fiscal years beginning on or after July 1, 2019, with the exception of smaller reporting companies and emerging growth companies, who must begin making the disclosures for fiscal years beginning on or after July 1, 2020.

KMK Legal Alerts and Blog Posts are intended to bring attention to developments in the law and are not intended as legal advice for any particular client or any particular situation. Please consult with counsel of your choice regarding any specific questions you may have.


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