SEC Approves December 1 as Required Compliance Date for Listing Exchange Clawback Requirements

The Securities and Exchange Commission (SEC) approved on June 9 amended versions of the listing exchange standards by the New York Stock Exchange and Nasdaq. Consequently, the clawback rules will become effective on Monday, October 2, 2023, and public issuers must implement compliant Dodd-Frank policies within 60 days after the effective date, i.e., no later than Friday, December 1, 2023.

Accordingly, public companies (US and non-US foreign private issuers) should begin preparing for the rules to become effective and to be required to adopt and file clawback policies if they haven’t already. We have previously provided a list of 10 important considerations for the adoption of compliant clawback policies and a refresher on the history of rulemaking from the SEC and listing exchanges.

We will continue to monitor the SEC regulatory process with respect to clawback policies. Stay tuned for further ML BeneBits posts, LawFlashes, and webinars on the latest developments. To receive timely updates regarding compliance and implementation deadlines, subscribe to our mailing list.