The AI Revolution in Financial Reporting

Artificial intelligence is redefining how the finance industry approaches data analysis, compliance, and reporting.

What is SEC Form TA-2?

SEC Form TA-2 is an annual report required under Rule 17Ac2 of the Securities Exchange Act of 1934, designed to give the SEC a clear picture of each registered transfer agent not regulated by a federal banking authority. The form captures detailed operational data, from transfer volumes and dividend disbursements to proxy services and technology updates, creating a complete view of a transfer agent’s activities during the reporting period.

SEC Regulation S-K is a foundational set of rules established by the Securities and Exchange Commission (SEC)that focuses on qualitative descriptions. It applies to registration statements, periodic reports, and other submissions under both the Securities Act of 1933 and the Securities Exchange Act of 1934.

What Is SEC Rule 16b-3?

SEC Rule 16b-3 is part of the Securities Exchange Act and specifically falls under Exchange Act Section 16(b). It was created to provide exemptions from the short swing profit rule, which requires certain insiders to return any profits made from buying and selling issuer equity securities within a six-month period. This provision helps companies maintain legitimate executive compensation programs, such as equity-based incentive awards, without unintentionally triggering insider trading concerns.

What is a 10-K form? Every publicly traded company is required to file financial reports with the Securities and Exchange Commission, or the SEC. The SEC Form 10-K offers a comprehensive snapshot of the company's financial health throughout the year, almost like an annual report for the business numbers. Ensuring these filings are completed on-time and accurately is essential for maintaining regulatory compliance, otherwise companies risk heavy sanctions.

SEC Rule 10b5-1 is a provision under the Securities Exchange Act of 1934. The rule allows company insiders to prearrange trades of company stock without running afoul of insider trading laws, so long as certain conditions are met. It provides an affirmative defense against accusations of insider trading if trades are made under a properly established 10b5-1 trading plan.

Shareholders of public companies have the opportunity to choose board members during elections. In the past, the process was relatively straightforward; however, new universal proxy card rules have brought waves of change. This is particularly true in cases where there are disagreements over who should join the board.

A new act signed into law in late 2022 changes financial reporting for businesses and public agencies. So, what is the Financial Data Transparency Act of 2022?

Companies are increasingly searching for corporate development officers to assist with business growth, internal value creation, and risk reduction. With all the attention paid to this role, let's take a look at what is corporate development, what it can accomplish, and best practices to note.

What Is Corporate Development?

Corporate development (corp dev) refers to actions that grow or add value to the company. A few forms that corporate development may take include:

Every year in connection with the annual shareholder meeting, and sometimes more often in the case of a special meeting, public companies must file a proxy statement. Proxy statements outline various plans for the company to shareholders, from the election of directors, to pay for executives, approval or amendment of equity plans, and even shareholder-sponsored proposals, should any be received. The proxy is a requirement for any company with public securities and must be filed with the Securities and Exchange Commission (SEC) as proscribed in SEC Form DEF 14A.