US SEC adopts final rules for holding foreign insiders accountable

WASHINGTON, Feb 27 (Reuters) - ‌Wall Street's ​top ​regulator on Friday said it had adopted final rules requiring disclosures ‌of shareholdings and transactions by directors and ⁠officers of foreign companies traded in the United ‌States, something Congress had ‌mandated late last year.

The move adds to an apparently tightening regulatory environment for foreign companies ​in the United States. Last year, the U.S. Securities and Exchange Commission began ⁠a rulemaking process that could require many foreign companies to ​make more investor disclosures, closing what officials said had become a loophole that ​benefitted China in particular.

Under ‌the rules adopted on Friday, top executives and board members of ⁠foreign private issuers who hold certain registered stock must begin disclosing their holdings and transactions by ⁠March 18 in compliance with the Holding Foreign ​Insiders Accountable Act, the SEC said in a statement.

The law, adopted by Congress in December, eliminates what ‌had been an exemption for insiders at foreign companies by requiring disclosures ‌like those made by top officials at ⁠U.S. companies.

(Reporting by ‌Daphne Psaledakis, Katharine ​Jackson and Douglas Gillison in Washington; Editing by Caitlin Webber and Matthew ‌Lewis)

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