With regard to Rule 3-10, for example, the changes would replace the condition that a subsidiary issuer or guarantor be 100% owned by the parent company with a condition that it be consolidated in the parent company’s consolidated financial statements and replace condensed consolidating financial information with certain new financial and nonfinancial disclosures.
One of the Rule 3-16 changes would replace the existing requirement to provide separate financial statements for each affiliate whose securities are pledged as collateral with amended financial and nonfinancial disclosures about the affiliate(s) and the collateral arrangement as a supplement to the consolidated financial statements of the registrant that issues the collateralized security. More detailed information is available at bit.ly/2RCnixC.
May 2020
