In December 2020, Congress enacted the Holding Foreign Companies Accountable (HFCA) Act. The SEC has released interim final amendments that begin to address the components of this Act.
Among other things, the HFCA Act requires the SEC to:
To identify Commission-Identified Issuers, the following needs to take place:
For each non-inspection year, Commission-Identified Issuers will be required to comply with the following submission and/or disclosure requirements in the interim framework:
Disclose the following in the foreign issuer’s annual report covering the non-inspection year identified by the SEC:
The SEC has also requested comments related to the following topics:
Additionally, if an issuer is determined to be a Commission-Identified Issuer for three consecutive years, the HFCA Act includes a directive for the SEC to prohibit trading in its securities. The SEC is separately assessing how to implement this requirement.