December 20, 2001
Mr. Jonathan Katz
U. S. Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549-0609
File No. S7-18-01
Mandated EDGAR Filing for Foreign Issuers
Dear Mr. Katz:
This letter supplements our letter of December 3, 2001, regarding the Securities and Exchange Commission's request for comments on its proposal to require foreign private issuers and foreign governments to file their securities documents electronically through the EDGAR system. This letter provides additional comments on the issue of the treatment of foreign language documents. This letter does not affect or alter any of our original comments in our letter dated December 3.
Treatment of Foreign Language Documents
Currently, all documents filed on EDGAR need to be in the English language. If adopted, this requirement will be applicable to foreign private issuers. We encourage the Commission to seriously consider the comments received from foreign private issuers on this provision of the proposed amendments to Regulation S-T. Based on our experience and discussions with member firms of KPMG International outside the United States, there are significant logistical and cost issues to weigh against any benefits that may be provided to US users of certain of this information.
Therefore, we recommend that the Commission reconsider the proposed requirement to have all documents submitted in unabridged English language. We recommend that Regulation S-T codify existing Commission practices in this area and provide guidance as to the types of documents for which full English translations must be provided, and those for which a summarized English translation would suffice. In particular, we believe that English translations of many items submitted on Form 6-K, such as local statutory reports and offering documents for securities issued to non-US investors, will not stand up to a reasonable cost-benefit analysis.
We appreciate the opportunity to comment on your proposal. If you have any questions about our comments, please contact Sam Ranzilla at 212-909-5837 or Melanie Dolan at 202-533-4934.
Very truly yours,