Securities and Exchange Commission: Termination of a Foreign Private Issuer's Registration of a Class of Securities Under Section 12(g) and Duty to File Reports Under Section 13(a) or 15(d) of the Securities Exchange Act of 1934
GAO-07-721R: Apr 18, 2007
- Full Report:
GAO reviewed the Securities and Exchange Commission's (SEC) new rule on termination of a foreign private issuer's registration of a class of securities under section 12(g) and duty to file reports under section 13(a) or 15(d) of the Securities Exchange Act of 1934. GAO found that (1) the final rule makes it easier for foreign private issuers to terminate registration of equity securities under the Securities Exchange Act by allowing exit if the daily trading volume in the United States of the subject class of equity securities had been no greater than 5 percent of the worldwide average daily trading volume for a recent 12-month period; and (2) the SEC complied with applicable requirements in promulgating the rule.