In December 2024, the SEC adopted rules that required several filings to be submitted electronically and in Inline XBRL. These requirements applied to specific forms and items, including portions of Form CA‑1, Form 1, Form X‑17A‑5 Part III, Form 17‑H, and the CCO report. In its September 11, 2026 order, the SEC provides exemptive relief from the Inline XBRL requirement for those filings, excluding the audited financial statement exhibits in Form CA‑1 and Form 1.
The SEC determined that Inline XBRL is not well suited for these filings because they contain custom data and, in some instances, duplicate existing processes. Feedback from industry professionals indicated that compliance costs were higher than anticipated, and the SEC concluded that the Inline XBRL requirement would create undue burdens without improving transparency or accessibility for investors. These forms are primarily used by the SEC to assess legal, financial, and operational standards for market intermediaries.
The order granting exemptive relief will:
- simplify how the SEC determines whether Inline XBRL tagging duplicates existing regulatory processes for specific registrants
- detail the operational effects on SBS Entities when certain compliance reports shift from structured to unstructured electronic formats
- explain how firms may reallocate resources saved from reduced Inline XBRL requirements to strengthen internal compliance programs.
The exemption is granted under Section 36(a)(1) of the Exchange Act and is intended to support the public interest and enhance investor protection. The relief applies only to the Inline XBRL requirement, and filers must still submit these forms electronically on EDGAR. The order also states that certain exhibits remain subject to the Inline XBRL requirement because they contain standardized financial data that benefits from structured tagging.
For more information on the order, click here.
Source:
Order Granting Exemptive Relief (sec.gov)
