Recently, the Securities and Exchange Commission (SEC) amended their EDGAR Filing Requirements and Form 144 Filings, adopting a policy of electronic submission among other things. According to their press release, these new requirements will:
- Create efficiency and transparency.
- Better the commission’s operational resilience.
- Improve accessibility, especially given COVID-19 restrictions.
In addition to amending the form submission process, the SEC adopted new requirements for “structured data reporting and remov[ing] outdated references.”
So, what does this new requirement from the SEC mean for your financial firm and its compliance department?
Understanding the new SEC amendment regarding electronic filings
“I am pleased to support these amendments because they will modernize and increase the efficiency of the filing process — for filers, investors, and the SEC,” said SEC Chair Gary Gensler. “In a digital age, it’s important for investors to have easy, online access to material information, rather than needing to visit SEC facilities to access that information. This is particularly important during COVID-19, which has made in-person visits to access these filings even more challenging.”
To help you comply with the new SEC requirements, we’ve aggregated the key information from the SEC’s new ruling.
1. The effective date for the rule is July 11, 2022.
According to the final ruling, the effective date for this amendment is July 11, 2022. However, the compliance dates vary depending on transition periods.
2. The SEC is providing transition periods of varying lengths.
While the majority of transition periods only extend six months past the effective date, the SEC is allowing “Three years after the effective date of the amendments for filers to submit the financial statements and accompanying schedules to the financial statements required by Form 11-K in the Inline XBRL structured data language.”
3. The amendment impacts multiple types of forms.
Included in this electronic form submission amendment are the following:
- Rule 101(b) of Regulation S-T documents.
- Form 144.
- Form 6-K filings.
- Section 12(d) certifications.
- Specific foreign language documents.
4. If they have not done so, firms will need to adopt Inline eXtensible Business Reporting Language.
In addition to electronic submission, the amendment will require firms to submit Form 11-K financial statements and schedules using Inline eXtensible Business Reporting Language (Inline XBRL).
5. Updates will be required for certain forms.
Firms will be required to remove “outdated references” from Form F-10, Form F-X and Form CB.
Have more questions about the new SEC electronic filing amendment? Schedule a quick one-on-one call with an National Regulatory Services (NRS®) expert consultant today!
