Mandatory Materiality Requirement Act of 2023

HR 4168, the Mandatory Materiality Requirement Act of 2023, requires the Securities and Exchange Commission (SEC) to specify in new disclosure rules that public companies (issuers) must only disclose information they determine is "material" to investment decisions. It defines "material" as information a reasonable investor would consider significant to their decision-making. The bill applies to SEC rulemaking on disclosure obligations for public companies under both the Securities Act of 1933 and the Securities Exchange Act of 1934. Exceptions allow the SEC to bypass this rule if it determines a change won't increase overall disclosure burdens on companies.