In support of the Commission’s mission to protect investors, maintain fair, orderly and efficient markets, and facilitate capital formation, the Corporate Finance Division seeks to ensure that investors receive material information to make informed investment decisions, both when The company offers its securities to the public initially and on an ongoing basis as it continues to provide information to the market. The Division also provides interpretive assistance to businesses regarding PSC rules and forms and makes recommendations to the Commission regarding new rules and revisions to existing rules.
Through the Division’s file review process, we selectively review files submitted under the Securities Act of 1933 and the Stock Exchange Act of 1934, as well as the decentralized and private market both to monitor and improve performance. compliance with disclosure and accounting requirements. The Division focuses its remedies for review on disclosures that appear to be inconsistent with the Commission’s rules or applicable accounting standards, or that appear to be materially deficient in justification or clarity.
In the course of a review, staff may provide feedback to a company for better compliance with applicable disclosure requirements. In response to those comments, a company may review its financial statements or amend its disclosure to provide additional or improved information, or it may commit to reviewing its financial statements or other disclosures in future filings. This feedback process deters fraud and facilitates investors’ access to the information necessary to make informed investment decisions, thereby improving the efficiency of capital markets. When appropriate, the Division refers matters to the Compliance Division.
The Division also provides legal and accounting advice and recommendations to the Commission and the public. We recommend to the Commission new rules, or changes to existing rules, as necessary to improve investor protection and facilitate capital formation. We also provide advice to companies, investors and their advisers by issuing legal and accounting bulletins for staff, guidance issues for staff disclosure, updates to the Division’s Financial Reporting Manual, interpretive and non-action letters, and interpretations of disclosure and compliance.