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Securities Regulation

Section 16 Insider Reporting Requirements Extended to Foreign Private Issuers Directors and Officers

December 24, 2025 | Posted by Mellissa Campbell Duru; Eric Scarazzo Topic(s): Capital Markets; Corporate Governance; Disclosure; Securities Regulation

Tucked within the National Defense Authorization Act of Fiscal Year 2026 (the NDAA) are the provisions of the Holding Foreign Insiders Accountable Act (the HFIAA).  The HFIAA was signed into law on December 18, 2025 and amends Section 16(a) of the Securities Exchange Act of 1934 (the Exchange Act) to extend Section 16(a) reporting obligations to the directors and officers of foreign private issuers (FPIs).  Prior to its enactment, directors and officers of FPIs were exempt from such reporting requirements.

Beginning on March 18, 2026, FPI directors and officers will be required to publicly report their beneficial ownership, and all transactions involving the equity securities of, an FPI that is listed on a U.S. securities exchange or registered with the Securities and Exchange Commission (SEC).  As a result, the Section 16(a) insider reporting obligations of FPI directors and officers will, for the first time, largely mirror the insider reporting requirements of directors and officers of U.S. domestic issuers.

In light of the upcoming March 18, 2026 reporting deadline, FPIs should immediately begin evaluating the new Section 16(a) reporting requirements, consider the build out of their Section 16(a) compliance protocols, and should commence educating and assisting their directors and officers, who will be affected by the changes ahead.

Background of Section 16(a)

Section 16(a) of the Exchange Act mandates the timely disclosure of beneficial ownership of a company’s registered equity securities and any changes in beneficial ownership by directors, officers, and any person who beneficially owns more than 10% of any registered class of a U.S. public company’s equity securities (collectively, “insiders”).  Insiders must publicly disclose, in filings with the SEC, transactions in securities or derivatives of such securities on Form 3 (initial statement of beneficial ownership), Form 4 (statement of changes in beneficial ownership) and Form 5 (annual statement of changes in beneficial ownership).

Historically, Rule 3a12-3(b) of the Exchange Act exempted FPIs from Section 16 requirements.  Instead, FPI insiders only had to comply with the insider reporting requirements of their home jurisdictions and specified share ownership disclosure requirements in annual reports on Form 20-F.

New Reporting Requirements for Directors and Officers of FPIs

General Forms 3, 4 and 5 Reporting

Beginning on March 18, 2026, directors and officers of FPIs must file electronically in English on the SEC’s filing platform known as EDGAR:

  • Form 3: directors and officers of FPIs listing or registering securities on or after March 18, 2026 must report their initial equity holdings on a Form 3 upon listing or the effectiveness of a registration statement under Section 12(g) of the Exchange Act, while directors and officers of FPIs that are already public must report their initial ownership within 10 days after an individual becomes a director or officer of the company. Directors and officers of FPIs that are public as of the date of this post need to report their ownership on Form 3 on March 18, 2026.
  • Form 4: directors and officers must report changes in beneficial ownership—including open-market trades, gifts, equity compensation grants, vesting events, option exercises, and tax withholdings— on Form 4 within two business days.
  • Form 5: directors and officers must file annual statements of changes in beneficial ownership on Form 5 within 45 days after the end of the applicable fiscal year.

Equity Compensation Reporting

Prior to the enactment of the NDAA, FPIs historically were allowed to disclose compensation information for directors and officers on an aggregate basis, unless individual disclosure was made in the home country.  In addition, share ownership of each director and officer needed to be disclosed only if it was greater than 1% of a class of shares.  The NDAA’s new Section 16(a) reporting obligations will elicit individualized, real-time disclosure of equity compensation information, such as individual grants (i.e., on an award-by-award basis) and aggregate holdings or ownership in the company.

Potential Exemptions

The NDAA grants the SEC the authority to provide exemptions from the Section 16(a) reporting requirements if the SEC determines that the laws of a foreign jurisdiction apply “substantially similar” requirements to such person, security, or transaction.  However, it is unclear what would be considered “substantially similar”, and whether or how the SEC might exercise such exemptive authority.

What is Not Covered by the NDAA (for now)

  • Limited Scope: No 10% Owner Reporting (Yet): notably, the NDAA applies only to directors and officers of FPIs and does not specify reporting for 10% insiders of FPIs.
  • Exemption from Short-Swing Liability (For Now): Section 16(b) “short swing profit disgorgement” and Section 16(c) “short sale restrictions” are not specifically addressed. However, the NDAA grants the SEC broad rulemaking authority to expand these requirements or provide exemptions for jurisdictions with “substantially similar” laws.

Next Steps

The NDAA has a short 90-day implementation window.  As such, FPIs will need to consider taking the following next steps as soon as possible.

  1. Identify Who is Subject to Section 16 Reporting and Inform Identified Directors and Officers
  • FPIs should begin to identify their Section 16 directors and officers. In most instances, this group will be equivalent to the “senior management” identified in a Form 20-F and will consist of persons who are currently subject to the FPI’s clawback policies.
  • The identification of who constitutes an officer is facts-and-circumstances driven, constantly changing with changes in management, and is colored by Section 16(a)’s definition and interpretations of “officer” under Rule 16a-1(f).
  • Section 16 reporting will be new for most FPI directors and officers. FPIs should consider how best to inform and educate their Section 16 directors and officers about the new requirements.
  1. Establish an Internal Reporting Framework
  • FPIs should establish a beneficial ownership and trading monitoring framework and should consider adopting mandatory pre‑clearance protocols for all transactions in issuer equity and related derivatives by directors and officers.
  • Insider trading policies (existing or new) will also need to be assessed and aligned with the new Section 16(a) reporting requirements.
  1. Obtain EDGAR Codes ASAP
  • If not already enrolled, FPIs will need to enroll their identified Section 16(a) directors and officers in EDGAR Next immediately in order for such persons to be able to timely file their mandatory reports on EDGAR. The process of enrollment may take as long as two weeks and will need to be considered in order to meet filing deadlines.  See our prior client alert here for more details.
  1. Identify and Report Beneficial Interests
  • Directors and officers will need to identify all of the securities over which they have a reportable beneficial interest under Section 16(a).
  • Such interests may include shares, options, warrants and other securities that are held directly or are held by family members, trusts and affiliated or controlled entities.
  • Directors and officers also should be aware that beneficial ownership under Section 16 can differ from beneficial ownership as reported for Section 13(d) or 13(g) purposes.

Conclusion

The NDAA will introduce significantly more complexity in insider reporting and compliance for FPIs and their directors and officers.  The implementation timeline of March 18, 2026 requires immediate planning and preparation.  FPIs will need to also be attentive to possible changes ahead as the NDAA is still subject to the SEC rulemaking, which may further impact FPIs’ reporting obligations.  Gibson Dunn’s lawyers are available to assist with any questions you may have regarding these developments.

Thank you to Of Counsels Marie Kwon and Rodrigo Surcan and associate Stephen Huie for their assistance with this update.

EDGAR Closed December 24, 2025 Through December 26, 2025

December 22, 2025 | Posted by Gibson, Dunn & Crutcher LLP Topic(s): Capital Markets; Disclosure; IPOs; Miscellaneous; Registration Statements; Securities Regulation

On December 22, 2025, the SEC announced that the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system will be closed from Wednesday, December 24, 2025 through Friday, December 26, 2025, in observance of the federal holiday. During this time, EDGAR filing websites will not be operational, SEC filings will not be accepted on EDGAR, and EDGAR Filer Support will be closed.

EDGAR operations will resume on Monday, December 29, 2025. The announcement also explained that any SEC filings due on December 24, December 25, or December 26, 2025 will be considered timely if filed on December 29, 2025, EDGAR’s next operational business day.

Post-Shutdown Guidance for Registration Statements: Stay the Course or Get in Line

November 14, 2025 | Posted by Atma Kabad; Hillary H. Holmes; Andrew L. Fabens; Stewart McDowell; Peter Wardle; Jinhua Zhang Topic(s): Corporate Governance; Securities Regulation

With the U.S. government reopening after a 43-day shutdown, the Securities and Exchange Commission Division of Corporation Finance (the “Division”) issued new Q&As on November 13, 2025 addressing certain post-shutdown issues, including the treatment of pending registration statements and proxy statements that were filed during the shutdown. Importantly, the guidance provides that:

  • Issuers that filed new or amended registration statements without a delaying amendment during the government shutdown do not need to file an amendment to their registration statements to add a delaying amendment. Those registration statements will still become effective automatically 20 days after the filing date under Section 8(a) of the Securities Act of 1933 (the “Securities Act”).
  • Issuers that filed new or amended registration statements without a delaying amendment during the government shutdown can still rely on Rule 430A, which provides a basis for companies to launch IPOs with a price range on the cover of their prospectus notwithstanding that the registration statement will become effective automatically.
  • If an issuer that filed a registration statement without a delaying amendment wishes to have the registration statement declared effective before the automatic 20-day period ends, it will need to file an amendment to its registration statement to include a delaying amendment and request acceleration under Rule 461.
  • For proxy statements and information statements, companies may proceed to file definitive materials once the 10-day waiting period has passed, even if the preliminary versions were filed during the government shutdown, except if the Division indicated that it would review the filing prior to the government shutdown.

The Division reminded issuers that the liability and anti-fraud provisions of the federal securities laws apply to registration statements that go effective automatically under Section 8(a), and that such issuers must ensure their filings do not contain material misstatements or omissions of material information required to be stated therein or necessary to make the statements therein not misleading. The Division also indicated that it would continue to review filings that were under review or which the Division indicated that it would review prior to the government shutdown in the order in which the filings were received.

The Division indicated that issuers filed over 900 registration statements during the shutdown and that the staff of the Division will review filings in the order in which they were received, suggesting that response times for comment letters, waivers and interpretive requests may initially take longer than usual until the backlog is cleared. Nevertheless, the guidance reflects the SEC’s intent not to impede IPOs and other securities offerings, allowing companies that filed during the shutdown to proceed under multiple paths.

Gibson Dunn’s lawyers are available to assist with any questions you may have regarding the SEC’s latest guidance and related compliance considerations under federal securities laws and regulations.

Updated Summary of Director Education Opportunities Now Available

October 15, 2025 | Posted by Hillary H. Holmes; Lori Zyskowski; Ronald O. Mueller; Elizabeth A. Ising Topic(s): Audit Committee; Corporate Governance; ESG; IPOs; Securities Regulation; Shareholder Proposals

Gibson Dunn’s summary of director education opportunities has been updated as of October 2025. A copy is available at this link. Boards of Directors of public and private companies find this a useful resource as they look for high quality education opportunities.

This quarter’s update to the summary of director education opportunities includes a number of new opportunities as well as updates to the programs offered by organizations that have been included in our prior updates.

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SEC Chairman Atkins Comments on Rule 14a-8 Challenges to Non-Binding Shareholder Proposals, as well as Delaware and Texas Corporate Laws

October 9, 2025 | Posted by Ronald O. Mueller; Elizabeth A. Ising; Thomas J. Kim; Brian J. Lane Topic(s): Corporate Governance; Proxy Statements and Annual Meetings; Securities Regulation; Shareholder Proposals

In a significant dinner speech on October 9, at the John L. Weinberg Center for Corporate Governance, SEC Chairman Atkins signaled the SEC’s willingness to take a step that could significantly alter the landscape for shareholder proposals submitted under Exchange Act Rule 14a-8, by allowing companies (at least, Delaware companies) to exclude precatory/non-binding shareholder proposals. In practice, the vast majority of Rule 14a-8 shareholder proposals are precatory.  The speech is available here: SEC.gov | Keynote Address at the John L. Weinberg Center for Corporate Governance’s 25th Anniversary Gala

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Initial Impacts of the Government Shutdown on SEC Operations

September 30, 2025 | Posted by Mellissa Campbell Duru; Thomas J. Kim; Elizabeth A. Ising; Andrew L. Fabens Topic(s): Capital Markets; IPOs; Proxy Statements and Annual Meetings; Registered Securities Offerings; Registration Statements; Securities Regulation; Shareholder Proposals; Underwriters and Agents

Division of Corporation Finance Statements on the Government Shutdown

A partial shutdown of the federal government is on track to occur at 12:01 a.m. ET on Wednesday, October 1, 2025, if Congress is unable to reach agreement on legislation funding the government. The Securities and Exchange Commission (the “SEC”) Division of Corporation Finance (the “Division”) announced today that, after 5:30 p.m. EST, “the Division of Corporation Finance and the Division of Investment Management will not be in a position to act upon any … requests [for effectiveness] until the SEC receives appropriations to fund its operations.” The Division advised that commencing October 1, a limited number of staff would be available to answer questions relating to fee calculations and emergency filing relief and it directed filers needing assistance with such matters to submit a request and contact information to CFEmergency@sec.gov.

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SEC Staff Permits Groundbreaking Retail Shareholder Voting Program To Implement Standing Voting Instructions

September 16, 2025 | Posted by Gibson, Dunn & Crutcher LLP Topic(s): Corporate Governance; Disclosure; Proxy Statements and Annual Meetings; Say on Pay; Securities Regulation; Shareholder Proposals

In a significant no-action letter issued on September 15, 2025 to Exxon Mobil Corporation, available here, the staff of the SEC’s Division of Corporation Finance (the “SEC Staff”) concurred that the company can implement a groundbreaking “Retail Voting Program” allowing retail shareholders to provide a standing instruction under which in future annual meetings their shares will be voted on an on-going basis as recommended by the company’s board of directors. Although the no-action request was issued to Exxon Mobil, other companies should be able to implement similar programs in reliance on the SEC Staff’s concurrence.

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Congratulations to Our Partner Jim Moloney

September 11, 2025 | Posted by Gibson, Dunn & Crutcher LLP Topic(s): Corporate Governance; Securities Regulation

We, the partners of Gibson Dunn’s Securities Regulation and Corporate Governance Practice Group, are proud to congratulate our friend and colleague James J. Moloney on his appointment as the Director of the Division of Corporation Finance at the Securities and Exchange Commission.

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Reminder for Resource Extraction Issuers: Form SD Due by September 29, 2025

August 25, 2025 | Posted by Harrison Tucker; Hillary H. Holmes Topic(s): Securities Regulation

As previously reported on our Securities Regulation and Corporate Governance Monitor here and here, domestic and foreign “resource extraction issuers” are required to annually disclose information about certain payments made to foreign governments or the U.S. federal government on Form SD. For companies with a December 31, 2024 fiscal year end, this year’s form will be due by September 29, 2025.

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SEC Launches Capital Markets Statistics and Data Visualization Webpage

August 13, 2025 | Posted by Gibson, Dunn & Crutcher LLP Topic(s): Capital Markets; Disclosure; Financial Statements; IPOs; Private Placements; Registered Securities Offerings; Securities Regulation

As described more fully in this press release, today the Securities and Exchange Commission announced a new statistics and data visualization webpage that includes statistics and graphics on key elements of the capital markets, such as initial public offerings, exempt offerings, corporate bond offerings, reporting issuers, municipal advisors, transfer agents, and household participation in the capital markets.

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