The U.S. Securities and Exchange Commission is sharpening its focus on corporate disclosures about the risks associated with the U.K.’s exit from the European Union, Chairman Jay Clayton said yesterday, the Wall Street Journal reported. “My personal view is that the potential impact of Brexit has been understated,” Clayton said. “I would expect companies to be looking at this closely and sharing their views with the investment community.” The U.K. has continued to negotiate with Brussels over the terms of its divorce from the EU, currently scheduled for March 29, but an agreement remains elusive. Britons voted to leave the EU in 2016. Companies in recent months have moved to prepare for Brexit by stocking up on raw materials, parts and medicines, and planning factory shutdowns, among other strategies. Firms also are reviewing their financial arrangements to determine whether they will need to relocate syndicated loans and various derivatives currently booked through London to Europe.
