Grygo is the chief content officer for FTF & FTF News.
Late last month, the SEC put forward amendments intended to “modernize its information collection and analysis methods by, among other things, proposing that a number of filings be submitted to the Commission electronically on EDGAR [the Electronic Data Gathering, Analysis, and Retrieval] system using structured data where appropriate,” according to the regulator’s announcement.
Many in the securities industry are hailing the move to embrace 21st century technologies as a much-needed step forward, especially for all the forms, submissions, reports, and other information required since the Securities Exchange Act was launched in1934.
Interestingly, the SEC’s modernization effort has gotten the approval of the securities industry group SIFMA, whose president and CEO Kenneth E. Bentsen, Jr., endorsed the move.
“SIFMA commends the SEC for proposing electronic submission changes, moving toward implementing a modernized filing framework suitable for the 21st century,” Bentsen says.
Specifically, the SEC acknowledges that current rules require registrants “to file or otherwise submit many Exchange Act forms, filings, or other submissions in paper form. During the COVID-19 pandemic, many submissions were made in electronic rather than paper form, which was generally well received. As part of its efforts to modernize the methods by which it collects and analyzes information from registrants, the proposed amendments would require registrants to make these submissions to the Commission electronically.”
So, if this works out, the industry can point to at least one positive outcome from the pandemic.
“We live in a digital age. In 2023, one might think that all filings to the Commission already could be made electronically. That’s not yet true,” says SEC Chair Gary Gensler, in a prepared statement. “Today, we have the important opportunity to require electronic filing for nearly all of the remaining paper filings required under the Exchange Act. I believe the proposal, if adopted, would save both registrants and the Commission time and resources.”
The proposed amendments will “require the electronic filing, submission, or posting of certain forms, filings, and other submissions that national securities exchanges, national securities associations, clearing agencies, broker-dealers, security-based swap dealers, and major security-based swap participants make with the Commission,” according to the SEC announcement.
“The proposed amendments would also make certain amendments regarding the Financial and Operational Combined Uniform Single (FOCUS) Report to harmonize it with other rules, make technical corrections, and provide clarifications,” the SEC notes. “In addition, the proposed amendments would require withdrawal of notices filed in connection with an exception to counting certain dealing transactions toward determining whether a person is a security-based swap dealer in specified circumstances.”
A public comment period “will remain open for 30 days after publication in the Federal Register or until May 22, 2023, whichever is later,” the regulator says.
The full text of the 427-page rule can be found here: https://bit.ly/3Mj2Kaz
A shorter, two-page fact sheet can be found here: https://bit.ly/3UcB2hz
“The logical and natural next step is for the SEC to also review its rules on the delivery of investor communications and foster evolution in the quality of investor communications and engagement,” adds Bentsen in his statement.
Need a Reprint?