The U.S. Securities and Exchange Commission (SEC) relies heavily on the Electronic Data Gathering, Analysis, and Retrieval system, commonly known as EDGAR, to streamline the submission and public sharing of regulatory documents. Now, with the unveiling of the latest draft EDGAR Filer Manual, significant shifts in the filing process are on the horizon for the financial community.
This new draft, especially Volume II, marks another phase in the ongoing enhancements and modifications to the EDGAR system overseen by the SEC. The SEC periodically issues draft versions of the EDGAR Filer Manual to gather feedback from filers and help them prepare for potential alterations to the EDGAR system. To successfully submit documents via EDGAR, filers must be aware of these revisions. In this blog, we’ll explore the must-know information and essential tips for mastering these revisions to the EDGAR Filer Manual.
Key Updates in the New Draft
The new draft EDGAR Filer Manual includes a variety of updates aimed at streamlining the filing process and improving the user experience. Some of the highlighted changes are:
- Adjustments to Submission Types and Extended Filing Times: Notable changes include the removal of references to certain submission types and taxonomies due to regulatory rulings and updates to filing cut-off times for Schedule 13D and Schedule 13G filings. Now, these filings have a “Filing Date” identical to the EDGAR “Received Date” even if received after 5:30 p.m. Eastern Time, extending the dissemination until 10:00 p.m. Eastern Time.
- Changes to Inline XBRL Tagging and Password Requirements: There have been updates to the EDGARLink Online interface, including renaming the checkbox for attaching Inline XBRL Fee Tagging Exhibits to “Attach Inline XBRL Filing Fee Exhibit“. Additionally, the password requirements for accessing the EDGAR Filing and Online Forms Management Websites have been increased to twelve characters.
- Updates to Filing Website and Online Forms Website: Enhancements include the addition of a “Last Account Activity” heading and the ability for filers to review account activity for the last 30 calendar days.
- Inclusion of New Exhibit and Technical Specification Changes: The draft manual details the introduction of new exhibit types, updates to form types to prevent duplication in reporting, and adjustments to submission form types to allow for changes in Market Participant Identification (MPID) values.
- Submission Window Extension for Deregistered Investment Companies: EDGAR will accept certain submission types from deregistered investment companies for 400 calendar days from the time the company was deregistered, after which these submissions will be suspended.
- Additional Resources: The manual offers more comprehensive resources, including tutorials and FAQs, to assist filers in navigating the EDGAR system efficiently.
Impact on the Filing Process
When the SEC introduces new requirements, they usually give filers time to adjust. It’s important to keep an eye out for the official manual release and any deadlines to comply. This way, organizations can get ready and update their internal procedures as needed. These changes have a big impact on filters. While the new procedures may make submitting documents quicker, filers need to understand them well to follow the rules and avoid penalties for mistakes.
It’s crucial for organizations to train their staff in the new EDGAR system. This training should cover everything in the new manual and refresh their memory of the important parts of the old system.
Once the Commission approves the final version of the EDGAR Filer Manual, it’s put up on the SEC’s website. This means filers can always find the latest info they need for their filings.
Conclusion
As we transition to the updated EDGAR system, the financial community can anticipate further enhancements that align with technological innovations. Companies should view these changes not as a burden but as an opportunity to future-proof their reporting processes and embrace the shift towards a more digital and transparent era in financial disclosure. The evolution from the original EDGAR system to its current state reflects the SEC’s adaptability and foresight in the face of changing technology and market needs.
