The US Securities and Exchange Commission is seemingly stepping further into the digital age. The agency this afternoon announced that it is doing away with paper filings for certain forms, and requiring such forms to be filed electronically with Edgar.
The changes are being conducted as a means of promoting “efficiency, transparency and operation resiliency.” Further, the changes are meant as a means of making electronic filings more readily accessible to the public, with the filings to be made easily searchable.
“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. Even when access to physical copies isn’t restricted, there are other costs associated with paper filings. It costs investors money and time to travel to the SEC’s reading room. It costs the SEC money and time to process paper filings. These amendments will reduce costs and drive more efficiencies for investors, filers, and the SEC,” commented SEC Chair Gary Gensler.
The changes are set to impact annual reports, Form 144’s (which is the notice of intent to sell securities), and Form 11-K’s (which is for annual reports related to employee stock purchase, or savings plans).
The requirement to file digitally will be effective thirty days after publication within the federal register, however transition periods are being put into place. For annual reports and Form 144’s, a six month transition period has been put into place. For Form 11-K’s, evidently three years of transition is required – meaning the changes won’t be in full force until sometime in 2025 at the earliest.
Information for this briefing was found via the SEC and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
