The United States Securities and
Exchange Commission (SEC) has proposed amendments to its information collection
procedures under the Securities Exchange Acts of 1934. The securities regulator now wants broker-dealers, clearing agencies and security-based swap dealers,
among others, to submit “a number of filings” electronically.
SEC proposes the filings be sent
via the Electronic Data Gathering, Analysis and Retrieval (EDGAR) internal
database system. These forms are to be filed “using structured data where
appropriate,” the regulator noted.
In a statement issued on
Wednesday, the financial watchdog noted that broker-dealers and other
registrants under its supervision are required under the Exchange Acts to
submit many forms and filings manually. However, during the wake of the
COVID-19 pandemic in 2020, many firms sought electronic
transmission of these forms due to health,
transportation and other logistical issues. These electronic filings were
“generally well received,” SEC noted.
The financial watchdog explained
that the amendment proposal is part of its efforts to modernize the methods by
which it collects and analyzes information from the registrants. SEC further noted that
it will accept public feedback on the proposed amendments until May 22, 2023, or
30 days after its publication in the Federal Register.
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The Amendment Covers “Nearly All
Remaining Paper Filings”
Speaking on the proposal, Gary
Gensler, SEC Chair, noted that the amendment is seeking electronic filing “for
nearly all of the remaining paper filings required under the Exchange Act.”
The SEC boss noted that the amendment, if adopted, would help both the regulatory agency
and market participants to save time and resources.
“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,” the SEC Chair explained.
Furthermore, SEC explained that its proposal seeks certain changes regarding the Financial and Operational Combined
Uniform Single (FOCUS) Report to “harmonize it with other rules, make technical
corrections and provide clarifications.” The FOCUS Report is an SEC form used
by broker-dealers and their primary self-regulatory organizations to disclose
their net capital position.
“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,” SEC
explained.
The United States Securities and
Exchange Commission (SEC) has proposed amendments to its information collection
procedures under the Securities Exchange Acts of 1934. The securities regulator now wants broker-dealers, clearing agencies and security-based swap dealers,
among others, to submit “a number of filings” electronically.
SEC proposes the filings be sent
via the Electronic Data Gathering, Analysis and Retrieval (EDGAR) internal
database system. These forms are to be filed “using structured data where
appropriate,” the regulator noted.
In a statement issued on
Wednesday, the financial watchdog noted that broker-dealers and other
registrants under its supervision are required under the Exchange Acts to
submit many forms and filings manually. However, during the wake of the
COVID-19 pandemic in 2020, many firms sought electronic
transmission of these forms due to health,
transportation and other logistical issues. These electronic filings were
“generally well received,” SEC noted.
The financial watchdog explained that the amendment proposal is part of its efforts to modernize the methods by which it collects and analyzes information from the registrants. SEC further noted that it will accept public feedback on the proposed amendments until May 22, 2023, or 30 days after its publication in the Federal Register.
