SEC proposes mandating plain English.The Securities and Exchange Commission proposed a rule that would mandate plain English Plain English (sometimes known, more broadly, as plain language) is a communication style that focuses on considering the audience's needs when writing. It recommends avoiding unnecessary words and avoiding jargon, technical terms, and long and ambiguous sentences. disclosure in prospectuses. The proposal would require companies to make the front and back cover pages, summary and risk factor sections of prospectuses more readable read·a·ble adj. 1. Easily read; legible: a readable typeface. 2. Pleasurable or interesting to read: a readable story. for the general public. In 1996, the SEC began the pilot program in which participating companies agreed that the new prospectuses would not disclose proprietary business and financial information. The SEC wants investors, financial analysts, brokers and other users of prospectuses to comment on the proposal and provide additional ways to improve readability read·a·ble adj. 1. Easily read; legible: a readable typeface. 2. Pleasurable or interesting to read: a readable story. . The SEC said mandating plain English would both help investors and market professionals and lessen less·en v. less·ened, less·en·ing, less·ens v.tr. 1. To make less; reduce. 2. Archaic To make little of; belittle. v.intr. To become less; decrease. the misunderstandings that lead to costly lawsuits. "We need to acknowledge that disclosure is not disclosure if it doesn't communicate," said SEC Chairman Arthur Levitt, Jr. The rule also would revise the current requirements for highly technical information in the front of prospectuses and would detail the clarity required in the entire document. The SEC also released A Plain English Handbook
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For more information on the plain English prospectus, contact Ann ANN, Scotch law. Half a year's stipend over and above what is owing for the incumbency due to a minister's relict, or child, or next of kin, after his decease. Wishaw. Also, an abbreviation of annus, year; also of annates. In the old law French writers, ann or rather an, signifies a year. D. Wallace of the SEC at 202-942-2980. The proposed rule and the handbook are available on the SEC home page at http://www.sec.gov. |
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