evidence shows that a large number of companies, including many of our countrys most innovative businesses, are opting to remain privately held. . As a data point, over this period, studies show the median word-count for SEC filings has more than doubled, yet readability of those documents is at an all-time low. Having said that, importantly, all such efforts will need to take into account statutory variances as well as differences in products and markets. See SEC Office of Investor Education and Advocacy, Straight Talk: From the SEC (June 29, 2017). The Commission has several initiatives underway to improve the disclosure available to investors. . Kennedy as the 32nd Chairman of the Securities and Exchange Commission. The SECs Equity Market Structure Advisory Committee (emsac) has provided the Commission with valuable perspectives on these and many other issues. This can be an expensive practice that goes well beyond a prudent management and control architecture; when third parties, such as auditors, outside counsel, and consultants, are involved, the costs financial costs and, in many ways more important, the cost in terms of time can.
I also want American businesses to be able to raise the money they need to grow and create jobs. . But, I think we need to be cautious about punishing responsible companies who nevertheless are victims of sophisticated cyber penetrations. . Are these investors benefitting from our efforts? . I expect the Commission will consider a proposal of this type in the coming months. 21 The agency is trying different approaches. . 1 My words are my own and do not necessarily reflect the views of my fellow Commissioners or the SEC staff. Piwowar, Remarks at the SEC Speaks Conference 2017: Remembering the Forgotten Investor (February 24, 2017. The Dodd-Frank Act of 2010 3 required the SEC to complete an unprecedented array of congressionally mandated rulemakings all on top of the agencys usual work. . Resources to Educate Investors No matter how robust our enforcement and examination programs, the reality is that the SEC cannot be everywhere. . The agency has exceptional tools that can help investors research professionals giving them investment advice, spot signs of fraud, and take action to protect themselves. I also know they know the rules and principles, and I expect them to adhere to and be guided by them. . You have a special place in our economy, do not take unfair advantage.
I intend to do just that in this, my first public speech as Chairman of the SEC. Public companies have a clear obligation to disclose material information about cyber risks and cyber events. . A member of the New York and Washington,.C.