A Section 16 Change That Some Might Have Missed (Way Back When)

For the next installment for my series of e-signature blogs, when the SEC amended Rule 302 of Regulation S-T in 2020, nearly everyone focused on that rule change – and the related relief it provided for those involved in the 10-Q and 10-K process. What some may have missed is that the SEC also made parallel changes to Rule 16a-3(i). A rare Section 16 rule change! That means you can adopt an electronic signature process for your Section 16 filings too. Signature authentication for Form 4s! Now that's a true blessing! Although it does beg the question: how many folks out there haven't been manually signing each Form 4 and Form 5? Those that sign on behalf of insiders as power of attorney should be signing each Form they file with the SEC. I imagine some have forgotten that obligation. It's not like there is much SEC enforcement risk here. In all my years, I've only seen a handful of enforcement cases that mention a Rule 302(b) violation – and that violation was tacked onto more serious charges…