As reported in today's Society Alert, the SEC reopened the comment period today for its proposed share repurchase rule in light of the 1% excise tax imposed on buybacks by the Inflation Reduction Act, which warranted a new cost-benefit analysis. The SEC concurrently released this staff memorandum, which purports to analyze the implications of the excise tax on the share repurchase activity and associated costs and benefits under the proposed rule. The comment period will remain open for 30 days after publication of the reopening release in the Federal Register. SEC Commissioner Uyeda issued a statement supporting the reopening of the comment period, but not the 30-day deadline, which is expected to overlap major holidays.
The Society commented on the proposed rule in April, as reported here.
See the SEC’s release and additional resources on our Capital Allocation/Capital Structure page >> Share/Debt Buybacks.