FOR IMMEDIATE RELEASE 99-125 SEC Adopts New Disclosure Requirements for Foreign Companies Washington, DC, September 29, 1999 -- Yesterday, the Commission adopted rule changes that will reduce the barriers foreign companies face when raising capital or listing their securities in more than one country. The rule changes 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 rule changes adopted today incorporate these standards into Form 20-F, the basic disclosure form for foreign private issuers. The new requirements become effective next year, beginning September 30, 2000. The rule changes do not affect any of the accounting requirements for financial statements. The SEC will continue to require disclosure on topics not covered by the IOSCO standards, such as market risk disclosure and disclosure for specialized industries such as banking and insurance. The SEC staff also will continue its normal review and comment procedures for filings under the new disclosure requirements. In adopting the rule changes, the Commission noted its long- standing support for initiatives that reduce barriers to cross- border offerings and listings in the United States, if they are consistent with the SEC's investor protection mandate. 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 SEC's traditional disclosure requirements. Corporation Finance Division Director Brian Lane today said, "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. We expect the IOSCO standards to gain global support, and we're pleased we can use these standards in our disclosure forms without compromising the quality of information investors receive." The full text of the rule changes can be found on the SEC's website at: www.sec.gov/rules/final/33- 7745.txt. # # #