On October 16th, the SEC announced that it approved final rule amendments to revise certain auditor independence requirements in Rule 2-01 of Regulation S-X. In May 2018, the SEC welcomed suggestions for other revisions to the independence requirements in its proposed rule for Auditor Independence with Respect to Certain Loans or Creditor/Debtor Relationships, which resulted in the December 2019 Proposing Release for Amendments to Rule 2-01. The initial independence requirements were adopted in 2000 with amendments last updated in 2003. Continue reading "SEC Revises Auditor Independence Rules" »

On October 16th, the SEC announced the agenda and panelists for the Monday, October 26th roundtable which will bring together SEC staff and the Financial Industry Regulatory Authority (FINRA). The event will feature the two groups presenting panels discussing initial observations on Regulation Best Interest and Form CRS. Continue reading "SEC Releases Agenda for October 26 Virtual..." »

Version 5.5b of all applications in the GoFiler Suite has been released. This release contains corrections and improvements for the new redlining format for inline XBRL documents and to better validate documents produced by other HTML software. Additionally, a number of improvements have been made to XDX processing for Risk Return documents and to add new tools to adjust the default contexts used to make facts for Level 1 through 3 facts.

Continue reading "New Release (5.5b) for the GoFiler Family of..." »

The SEC and the Commodity Futures Trading Commission (CFTC) announced that their agencies will be partnering to host a virtual open meeting on Thursday, October 22, 2020, at 10:00 am EDT. Continue reading "SEC and CFTC to Host a Virtual Joint Open..." »

The SEC has released a statement concerning inappropriate custom member use in XBRL pertaining to certain axes. The US GAAP reporting taxonomy has designated a limited set of permitted members for these axes. The SEC has observed that occasionally filers have inappropriately added custom members where they are not allowed. Continue reading "SEC Releases Statement about Inappropriate XBRL..." »

On October 7th, the SEC proposed a new limited, conditional exemption from broker registration requirements for “finders” who assist issuers with raising capital in private markets from accredited investors. If approved, the planned exemption would allow natural persons to participate in certain limited activities involving accredited investors without being registered as brokers with the SEC. The proposed exemptive order aims to help small businesses that face challenges raising the capital they need to grow and succeed, especially when they are located in areas that do not have established capital raising networks. It will also bring clarity to finders’ regulatory status in a personalized manner that focuses on the capital formation needs of certain smaller issuers while preserving investor protections. Continue reading "SEC Proposes Conditional Exemptive Order for..." »

On October 7th, the SEC adopted a new rule and related changes that will put into place a comprehensive regulatory framework for arrangements where funds invests in one or more other funds (“fund of funds” arrangements). The new rule reflects the decades of experience the SEC has with fund of funds arrangements and should foster a consistent and efficient rules-based regime for the formation and oversight of funds of funds. The new rule and amendments are being adopted under the Investment Company Act of 1940 and are designed to streamline and enhance the regulatory framework for fund of funds arrangements. The SEC also is rescinding Rule 12d1-2 under the Act and most exemptive orders granting relief from sections 12(d)(1)(A), (B), (C), and (G) of the Act. Finally, related amendments to Rule 12d1-1 under the Act and Form N-CEN are being implemented. Continue reading "SEC Makes Changes to Regulatory Framework for..." »

On October 7th, the SEC announced that it has rescheduled its compliance outreach program’s national seminar for investment companies and investment advisers. It will now take place on November 19, 2020. The compliance program is aimed at helping chief compliance officers (CCOs) and other senior personnel at investment companies and investment advisory firms improve their compliance programs for the protection of investors. Continue reading "SEC to Host Virtual National Compliance..." »

The SEC will be closed today, Monday, October 12th, in observance of Columbus Day. The EDGAR System will not receive, process or accept filings on this day. Filings with a due date of October 12th will be due the following business day. Continue reading "SEC Closed October 12th for Columbus Day" »

On October 5th, the SEC published a staff report entitled “US Credit Markets: Interconnectedness and the Effects of the COVID-19 Economic Shock”. This report focuses on the origination, distribution, and secondary market flow of credit across the US credit markets. In addition, the report addresses the manner in which the related interconnections in the credit markets operated given the impact of the COVID-19 pandemic. Along with releasing the report, SEC staff will host a roundtable on Interconnectedness and Risk in US Credit Markets to explore these and other related issues on the afternoon of October 14th.
Continue reading "SEC Releases Report on Credit Market..." »

On September 23rd, the SEC voted to adopt revisions to its congressionally mandated whistleblower program rules. The 2010 addition of Section 21F to the Securities Exchange Act of 1934 established the SEC’s whistleblower program, which authorizes the SEC to make monetary awards to eligible individuals who voluntarily provide original information about violations of the securities laws when it leads to successful SEC enforcement actions resulting in monetary sanctions over $1 million.
Continue reading "SEC Adds Clarity, Efficiency, and Transparency..." »

On September 28th, the SEC announced a new proposal to improve the operational transparency, system integrity, and regulatory oversight of alternative trading systems. These systems trade government securities and repurchase and reverse repurchase agreements on government securities. US government securities markets are among the most significant and liquid securities markets in the world. Including US Treasury securities and agency securities, government securities comprise more than half of the outstanding debt issuances in the US bond market. They therefore play a critical role in the US and global economies. During the latter half of 2019, the average daily trading volume in government securities was approximately $835 billion. In addition to seeking public opinion on regulating these markets, the SEC is also requesting comment on the regulatory framework for electronic platforms that trade corporate debt and municipal securities. Continue reading "SEC Proposes to Extend Regulations ATS and SCI..." »

On September 28th, the SEC announced that it will host an event on October 26th from 1:00 to 3:00 pm ET, which will bring together SEC staff and the Financial Industry Regulatory Authority (FINRA) for a roundtable that was announced in an earlier statement by the Staff Standards of Conduct Implementation Committee. The two groups will discuss initial observations following the June 30, 2020 compliance date for Regulation Best Interest and Form CRS. Continue reading "SEC to Host October 26 Virtual Roundtable on..." »

With the release of the new SEC fee rate table, the SEC changed the location of the table on their website. Because the software uses the location to download the fee rate table for use in calculating filing fees, the current version of the software will not be able to download the new fee rate table. Additionally, it does not detect that the fees are out of date because the old fee rate table is still available at the old location on the SEC’s website.

Continue reading "Notice Regarding the Fee Rate Table" »

In 2019, the Federal Energy Regulatory Commission (FERC) revised its electronic filing format to incorporate structured data in the eXtensible Business Reporting Language (XBRL) format. As has been the case with other federal regulators, the move to adopt XBRL is being undertaken to modernize the reporting environment and increase efficiency in submitting and consuming data. Broad support across the industry also helped drive the action.
Continue reading "What Is the FERC XBRL Mandate?" »