Securities Law, NYSE, NASDAQ & OTC Markets Listings & Compliance

Navigating SEC Form 6-K

For foreign private issuers (FPIs) listed in the United States, staying compliant with U.S. Securities and Exchange Commission (SEC) regulations is a critical task. Among the various reporting obligations, Form 6-K stands out as a key mechanism for providing ongoing disclosures about corporate developments. While it may seem straightforward—submit press releases, shareholder reports, and other published materials to the SEC—Form 6-K is layered with complexities that require careful navigation. In this blog, we dive into the essentials of Form 6-K, its requirements, practical considerations, and how it integrates with other SEC filings like Form F-3, drawing on insights from years of market practice.

What is Form 6-K and Why Does it Matter?

Form 6-K is a reporting tool under the U.S. Securities Exchange Act of 1934, specifically designed for FPIs to keep the SEC and investors informed about significant corporate news. Once an FPI lists its securities in the U.S., it becomes subject to two primary reporting obligations under Section 13 of the Exchange Act:

• Annual Report on Form 20-F: due within four months after the fiscal year-end.
• Periodic Reports on Form 6-K: furnished as material information is published.

Unlike Form 20-F, which is “filed” with the SEC, Form 6-K is “furnished.” While both are submitted electronically via the SEC’s EDGAR system, this distinction carries potential liability implications, which we’ll explore later. Form 6-K’s purpose is to ensure that material information already made public—whether required by home country laws, stock exchange rules, or distributed to shareholders—is promptly shared with the SEC.

What Information Goes into Form 6-K?

At its core, Form 6-K requires FPIs to submit material information that is:

• Made public under home country law.
• Filed publicly under stock exchange rules.
• Distributed to shareholders.

The SEC defines “material” as information a reasonable investor would consider important when deciding to buy or sell a security. Form 6-K provides a non-exhaustive list of topics that may qualify, mirroring items required in Form 8-K for U.S. companies. These include:

• Earnings announcements.
• Mergers, acquisitions, or asset dispositions.
• Changes in management or control.
• Auditor changes.
• Events affecting securities, such as defaults or stock splits.
• Bankruptcy or receivership proceedings.
• Cybersecurity incidents.

Additionally, a catch-all provision mandates reporting any other information the FPI deems material to its security holders. Documents submitted via Form 6-K can range from earnings releases and press statements to shareholder reports, analyst presentations, conference call transcripts, court filings, and insider transaction reports.

Determining materiality isn’t always clear-cut. There’s no bright-line test, and U.S. courts have described materiality as a mixed question of law and fact. FPIs must assess whether information meets the threshold of significance on a consolidated basis, allowing them to avoid flooding the SEC with trivial updates.

Timing and Submission: Getting it Right

Form 6-K must be furnished “promptly” after the material is published, though the SEC hasn’t defined a precise timeline. Market practice suggests submitting significant disclosures, like earnings releases or merger announcements, on the same day they’re published. For less urgent materials, such as routine press releases or shareholder mailings, FPIs often aggregate them into a single Form 6-K within a business week. The form’s cover page still references a monthly period—a nod to the era of mailed paper submissions—but adhering to a monthly cadence isn’t recommended for critical updates.

Form 6-K can be signed by any authorized company representative, acting on behalf of the FPI, not personally. Unlike Form 20-F, it doesn’t require Sarbanes-Oxley Act certifications, even when financial statements are included or when the form is incorporated into a Form F-3 registration statement.

All submissions must be in English. If original documents are in another language, FPIs must provide either a full English translation (for critical documents like financial statements or press releases) or a fair and accurate English summary. Form 6-K is almost always filed electronically via EDGAR, unless the FPI secures a rare hardship exemption for paper filing.

Liability and Legal Considerations

The distinction between “filed” and “furnished” matters when it comes to liability. Furnished documents like Form 6-K are generally subject to lower liability under U.S. securities laws compared to filed documents like Form 20-F. However, FPIs must remain vigilant:

• Antifraud Provisions: All public communications, including Form 6-K, are subject to SEC antifraud rules. Misleading statements can lead to enforcement actions.
• Safe Harbor for Forward-Looking Statements: Form 6-K benefits from a special safe harbor under Rule 175 of the Securities Act, even though it’s not formally “filed.” Forward-looking information—like revenue projections or management plans—is protected from antifraud liability unless made without a reasonable basis or in bad faith.
• Regulation FD Exemption: FPIs are exempt from Regulation FD, which governs selective disclosure for U.S. issuers. However, many FPIs voluntarily align with FD principles, filing Form 6-K to broadly disseminate material nonpublic information, especially to comply with home country or non-U.S. exchange rules.

If material events occur but aren’t required to be disclosed under home country or exchange rules, FPIs aren’t obligated to file a Form 6-K. However, voluntary disclosure may be strategic to prevent leaks or enable insider trading by sharing material nonpublic information publicly.

Financial Disclosures in Form 6-K

Form 6-K offers significant flexibility for financial reporting compared to Form 20-F. While Form 20-F requires financial statements in U.S. GAAP, IASB IFRS, or another GAAP reconciled to U.S. GAAP, Form 6-K has no such restrictions. FPIs commonly:

• Use home country GAAP for interim financial statements, even if Form 20-F uses U.S. GAAP or IASB IFRS.
• Apply IFRS as endorsed by a home country regulator (e.g., EU-endorsed IFRS).
• Provide condensed or summary financials that don’t comply with SEC Regulation S-X or IAS 34.

However, FPIs must ensure consistency to meet investor expectations and avoid misleading disclosures. Special rules apply when Form 6-K is incorporated into a Form F-3, as discussed below.

Non-GAAP financial measures are permitted in Form 6-K, subject to Regulation G, which requires reconciliation to the most comparable GAAP measure. FPIs listed on non-U.S. exchanges and releasing information abroad may be exempt from Regulation G if their non-GAAP measures aren’t derived from U.S. GAAP. If a Form 6-K is incorporated into a Form F-3, additional restrictions under Regulation S-K Item 10(e) apply.

Financial statements in Form 6-K generally don’t require XBRL formatting, except in two cases: when the form satisfies Form F-3’s nine-month updating requirement or when it includes revised audited annual financials reflecting significant changes like discontinued operations.

Form 6-K and Unregistered Offerings

For offshore or unregistered securities offerings, FPIs may need to file Form 6-K if the offering is material. Under Securities Act Rule 135c, press announcements about such offerings must be furnished on Form 6-K with a required legend and limited information. Offering circulars for foreign offerings should only include new material information, not the entire document, to avoid implying U.S. marketing.

Integrating Form 6-K with Form F-3

Form F-3, a “short-form” registration statement for seasoned FPIs, allows incorporation by reference of Exchange Act filings, including Form 20-F and select Form 6-Ks. This integration streamlines updates but requires careful planning:

• Selective Incorporation: Form 6-Ks aren’t automatically incorporated into Form F-3. FPIs must explicitly reference them, either in the Form F-3’s incorporation section (for prior Form 6-Ks) or on the Form 6-K’s cover page (for post-effectiveness filings).
• Material vs. Non-Material: FPIs can choose which Form 6-Ks to incorporate. For example, a quarterly earnings release with financials and MD&A may be incorporated, while a CEO’s promotional statement may be filed separately and excluded.
• Updating Requirements: Form F-3 requires interim financials after nine months from the fiscal year-end (e.g., June 30 financials for a December 31 FPI by September 30). These must be filed on an incorporated Form 6-K. If more current financials are published (e.g., March 31 data), they must also be included.
• Other Updates: Form 6-K can provide audited year-end financials, acquired company financials, or other disclosures (e.g., material changes, underwriting agreements) to keep Form F-3 current without formal amendments.

For instance, an FPI might furnish its glossy annual report on Form 6-K early in the year, then incorporate specific sections into a later Form 20-F, streamlining compliance with both SEC and home country requirements.

Best Practices for Form 6-K Compliance

To master Form 6-K, FPIs should adopt these strategies:

• Assess Materiality Carefully: Use the SEC’s examples as a guide but tailor decisions to the FPI’s specific context.
• Act Promptly: File critical disclosures same-day and aggregate routine items weekly.
• Ensure English Compliance: Provide full translations for key documents and summaries for others.
• Leverage Flexibility: Use Form 6-K strategically for voluntary disclosures to manage market expectations or insider trading risks.
• Coordinate with Form F-3: Plan which Form 6-Ks to incorporate, ensuring timely updates for offerings.
• Maintain Consistency: Align financial reporting with investor expectations to avoid confusion or anti-fraud risks.

Conclusion

Form 6-K may appear simple, but its nuances demand attention to detail and strategic foresight. By understanding its requirements, liabilities, and interplay with Form F-3, FPIs can navigate this SEC obligation with confidence, ensuring compliance while effectively communicating with U.S. investors. Whether it’s a blockbuster earnings release or a routine shareholder mailing, Form 6-K is a vital tool in the FPI’s regulatory toolkit.

If you are a foreign company with questions about your SEC filings or are interested in taking your company public, Hamilton & Associates Law Group, P.A. is ready to assist you. Our Founder, Brenda Hamilton, is a nationally known and recognized securities attorney with over two decades of experience assisting issuers worldwide with going public on the Nasdaq, NYSE, and OTC Markets. Since 1998, Ms. Hamilton has been a leading voice in corporate and securities law, representing both domestic and international clients across diverse industries and jurisdictions. Whether you are taking your company public, raising capital, navigating regulatory challenges, or entering new markets, Brenda Hamilton and her team deliver the experience, strategic insight, and results-driven representation you need to succeed.

To speak with a Securities Attorney, please contact Brenda Hamilton at 200 E Palmetto Rd, Suite 103, Boca Raton, Florida, (561) 416-8956, or by email at [email protected].

Hamilton & Associates | Securities Attorneys
Brenda Hamilton, Securities Attorney
200 E Palmetto Rd, Suite 103
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855
www.SecuritiesLawyer101.com