The Securities and Exchange Commission (SEC) is seeking public comments as part of its Paperwork Reduction Act procedures on the reinstatement of a previously approved information collection, which is gathered under rules regarding professional conduct for attorneys. These rules require attorneys practicing before the SEC to report evidence of material violations by an issuer. An alternative procedure allows issuers to create a Qualified Legal Compliance Committee (QLCC) to handle such reports. The SEC estimates that 3% of issuers have or will establish a QLCC, which will result in an annual burden of 692 hours and a cost of $242,200, mainly due to involvement of outside counsel. Public comments on this collection are invited until February 14, 2025.
Simple Explanation
The Securities and Exchange Commission (SEC) wants people to share their thoughts about a rule where lawyers must tell if a company is breaking important rules. Companies can choose a special group to handle these reports. This rule might make things harder and more expensive for some companies, and the SEC wants ideas on how to make it better.