December 21, 2001
Mr. Jonathan Katz
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 is the response of KPMG, Japan to 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 our comments on the issue of the treatment of Japanese language documents.
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 Japanese private issuers. We encourage the Commission to seriously consider the comments received from Japanese private issuers on this provision of the proposed amendments to Regulation S-T. Based on our experience, 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 Japanese language documents submitted on Form 6-K, such as Japanese statutory reports and offering documents for securities issued to Japanese investors, which contain redundant information, including non-consolidated financial information that pertains primarily to the parent company only, will not stand up to a reasonable cost-benefit analysis.
We appreciate the opportunity to comment on your proposal.
Very truly yours,