Similarly, commissioner Hester M. Peirce said the rules focus “excessively on random trees rather than giving a realistic view of the forest,” highlighting items that “entertain the onlooker rather than educate the investor.” Peirce contended that preparing lengthy and complex disclosures “eats up lots of resources,” such as managerial oversight and billable hours for accountants and attorneys.
Roundtable participants generally concurred that the rules could benefit from an effort to reduce complexity and cost. However, some stakeholders – specifically those representing investors – called for more disclosure. They stressed that the existing rules resulted from the 2008 financial crisis and are intended to prevent similar situations in the future. (“That to us portends a brewing battle,” global law firm Cooley wrote in its recap of the SEC roundtable.)
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