SEC confronts non-GAAP disclosures and votes on mandatory arbitration

SEC panel emphasized need for greater transparency in arbitration clauses and stricter oversight of misleading non-GAAP disclosures.

At its June convening, the SEC’s Investor Advisory Committee (IAC) turned its attention to two perennially thorny issues in US capital markets governance: the use of non-GAAP (Generally Accepted Accounting Principles) financial disclosures by public companies, and the proliferation of mandatory arbitration clauses in investment advisory agreements.

With regulatory

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