FOR IMMEDIATE RELEASE 99-12 SEC Proposes International Harmonization of Disclosure Requirements for Foreign Companies Washington, D.C., February 3, 1999 -- The Commission today proposed rule changes that will reduce the barriers foreign companies face when raising capital or listing their securities in more than one country. The proposal would bring SEC disclosure requirements for foreign companies closer to the international standards endorsed late last year by the International Organization of Securities Commissions, IOSCO, the global association of securities regulators. The IOSCO standards were negotiated over several years among securities regulators in the major developed capital markets. These standard items of disclosure cover basic topics such as the description of the company's business, results of operations and management and the securities it plans to offer or list. Companies could use these international standards to prepare a core disclosure document that, with a minimum of tailoring to fit national requirements, would be accepted in many countries. The Commission's proposal would incorporate these standards into Form 20-F, the basic disclosure form for foreign private issuers. The proposal does not affect any of the reconciliation requirements for financial statements. The SEC would continue to require disclosure on topics not covered by the IOSCO standards, such as market risk disclosure and disclosure for certain industries such as banking and insurance. In issuing the proposed rule changes for public comment, the Commission noted that it has long supported the goal of an integrated international disclosure system. The IOSCO standards represent a strong international consensus on fundamental disclosure topics, and the Commission believes they are comparable, in terms of investor protection, to the current SEC disclosure requirements. Corporation Finance Division Director Brian Lane today said, "International harmonization benefits issuers and investors, as long as the bar continues to be set high in terms of transparency and investor protection. We think the IOSCO disclosure standards are a good first step toward creating a framework for an `international passport' to the world's capital markets." The Commission's release also notes that the IOSCO standards may serve as a blueprint for developing markets that want to bring their domestic standards more in line with the standards in developed markets. The full proposal can be found on the SEC's website at: www.sec.gov/rules/proposed/33-7637.txt. The comment period on the proposed rule changes ends 60 days after they are published in the Federal Register. # # #