The Securities and Exchange Commission (SEC) on July 29, 1998, issued the attached "Statement of the Commission Regarding Disclosure of Year 2000 Issues and Consequences by Public Companies, Investment Advisers, Investment Companies, and Municipal Securities Issuers." The statement, which took effect August 4, 1998, supersedes disclosure guidance provided in SEC Staff Legal Bulletin No. 5 (see FIL-24-98: Inactive Financial Institution Letters: issued February 27, 1998). The statement requires a public company to make Year 2000 disclosures in "Management's Discussion and Analysis of Financial Condition and Results of Operations" when:
This summary of the attached statement is not intended to be comprehensive or a definitive statement of the Year 2000 disclosure obligations of public companies. Detailed guidelines and recommendations are contained in the statement. A public company must make Year 2000 disclosures in its Forms 10-K and 10-Q (disclosures in Form 10-Q must be made beginning no later than the quarter ending after August 4, 1998). FDIC-supervised institutions registered under the Securities Exchange Act of 1934, as implemented by 12 C.F.R. Part 335, or institutions selling securities under an offering circular should prepare their disclosures of Year 2000 obligations in public filings so that such disclosures are consistent with the attached statement. The FDIC strongly encourages other insured depository institutions to use the statement as the basis for appropriate disclosure concerning Year 2000 issues in publicly available documents that report on the institution's financial results. The FDIC recommends that disclosure of Year 2000 readiness be included in one or more of the following:
Distribution: FDIC-Supervised Banks (Commercial and Savings) NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (800-276-6003 or (703) 562-2200). |