The SEC will be closed Thursday, November 28 in observance of Thanksgiving Day. The EDGAR System will not receive, process or accept filings on this day. Filings with a due date of November 28 will be due the following business day.Continue reading "Thanksgiving Hours" »
Wednesday, November 27. 2019
SEC Proposes to Modernize Regulation of Derivatives Used by Registered Funds and Business Development Companies
On November 25th, the SEC proposed a new rule that should enhance the regulation of the use of derivatives by registered investment companies (including mutual funds), exchange-traded funds (ETFs), closed-end funds, and business development companies. Funds often use derivatives to gain exposure more efficiently to particular asset classes while mitigating risk, but there are cases where derivative use can heighten risks to investors and markets, including risks related to leverage. In addition, the development of staff guidance and industry practice over past decades has created situations where different funds may treat the same kind of derivative differently, often based on their own views and opinions of the SEC's rules and industry standards. These amendments would codify a uniform set of conditions and exemptions through an updated and more comprehensive approach to the regulation of the use of derivatives by these funds, and this would in turn benefit investors, fund, and the markets by standardizing the framework for funds'
derivatives risk management.
Monday, November 25. 2019
Version 5.1c of all applications in the GoFiler Suite has been released. This release contains improvements to XDX editing, validation, and processing as well as improvements for Page View, XBRL View, and other EDGAR forms. Additionally, this version contains updates to the quick keys to allow user to program custom quick keys.Continue reading "New Release (5.1c) for the GoFiler Family of..." »
XBRL US seeks public review and comment on version 11 of the Data Quality Committee (DQC) rules. The DQC rules aim to help filers limit mistakes and avoid data inconsistencies that can adversely affect analysis of reported financial information. The eighth set of rules includes guidance for issuers using either the US GAAP or IFRS taxonomies.Continue reading "XBRL US Releases Data Quality Committee Ruleset 11" »
SEC Announces Conference on Macroeconomic and Structural Trends and Dynamics Affecting the Capital Markets
On November 20th, the SEC announced it will host a conference on December 4th entitled "The State of Our Securities Markets". This conference will bring together current and former government officials and experts from different areas of the private sector as it explores the ever-changing economic, risk, and market environments. In addition, what these changes mean for the structure and function of the securities markets will be discussed. In particular, the conference with focus on macroeconomic trends (including their influence on capital markets), changes to the global equity and credit markets (including how today's markets are different from those of the early 2000s), and market concentration and fragmentation within certain areas of the securities market (including relevant causes and potential risks and effects).
Continue reading "SEC Announces Conference on Macroeconomic and..." »
In the EDGAR world, inline CSS can be used to style documents. However, CSS style sheets are not allowed. I recently ran into a case where document needed to be published on a system which was just the opposite — CSS classes are ok, but inline styles are verboten. A quick Legato script saved may hours of work by translating the inline styles to a style sheet.Continue reading "LDC #161: Quickly Adding CSS Classes to an..." »
Friday, November 22. 2019
On November 19th, XBRL US released the Taxonomy Development Handbook for public review. The handbook is a comprehensive guide that directs regulators, industry experts, and businesses through a practical roadmap to building high quality data standards with XBRL. This freely available, foundational document takes readers through the necessary stages of standards development, including: 1) building the appropriate transport data model, 2) assessing project scope, including use cases and requirements, 3) establishing a governance structure, 4) documenting the standards program, and 5) the step-by-step mechanics of building the taxonomy. The handbook also contains an introduction to the XBRL financial data standard, templates to guide developers in documenting the taxonomy, and case studies of XBRL as a method of improving data reporting in various industries.Continue reading "XBRL US Releases Taxonomy Development Handbook..." »
Monday, November 18. 2019
On November 5th, the SEC proposed amendments to the rules concerning proxy solicitations and the exemptions from federal disclosure rules governing businesses dispensing proxy voting advice that should enhance the quality of disclosure about material conflicts of interest that are provided to clients. In addition, these proposed changes would provide for a period of review and feedback through which companies and other soliciting parties would be able to identify errors in their proxy voting advice. This review and feedback period would only be available to companies that file definitive proxy materials 25 days or more prior to the relevant meeting.Continue reading "SEC Proposes Rule Amendments to Improve..." »
Friday, November 15. 2019
Last month, we discussed logging user submissions to the SEC in our blog post LDC 154. Well, thinking more about this, I realized it was probably not a good idea to not secure the log file. If someone makes a mistake, and files a document they shouldn’t, they could simply alter the log to show different times or users filing the document, and there is no record of it. A malicious user could easily just change what the log says! This is unacceptable and easily within our power to fix. To do so, we’re going to use a common function, the MD5 hash function.
Continue reading "LDC #160: Securing Log Files with MD5" »
Friday, November 08. 2019
The SEC will be closed Monday, November 11 in observance of Veterans Day. The EDGAR System will not receive, process or accept filings on this day. Filings with a due date of November 11 will be due the following
The SEC’s Division of Enforcement issued its yearly report for fiscal year 2019 on November 6th. This report explores the division’s efforts and initiatives on the behalf of investors. It also highlights significant actions and presents both qualitative and quantitative perspectives on the actions of the division during the previous fiscal year.Continue reading "SEC Division of Enforcement Publishes Annual..." »
Thursday, November 07. 2019
On November 4th, the SEC proposed new amendments that would modernize rules under the Investment Advisers Act that focus on investment advisor advertisements and payments to solicitors. The proposed amendments are intended to update these rules to reflect changes in technology, the expectations of investors seeking advisory services, and the evolution of industry practices. These amendments would replace the current rules’ broadly drawn limitations with principles-based provisions such that certain investment adviser advertisements and payments to solicitors would be prohibited in some cases. The proposed approach would also permit the use of testimonials, endorsements, and third-party ratings, subject to certain conditions, and would include tailored requirements for the presentation of performance results based on an advertisement’s intended audience. The Investment Act rules in question for advertisements and solicitations have not been updated since their adoption in 1961 and 1979.Continue reading "SEC Proposes to Modernize Advertising and Cash..." »
Wednesday, November 06. 2019
On November 5, 2019, the SEC proposed amendments to Exchange Act Rule 14a-8, the shareholder proposal rule. This rule requires companies that are subject to the federal proxy rules to include shareholder proposals in their proxy statements, subject to certain procedural and substantive requirements. The proposed amendments seek to modernize the shareholder proposal rule by updating the criteria that a shareholder must satisfy to be eligible to require a company to include a proposal in its proxy statement and by updating the levels of shareholder support a proposal must receive to be eligible for resubmission at the same company’s future shareholder meetings.Continue reading "SEC Proposes Amendments to Modernize..." »
Monday, November 04. 2019
Staff at the Division of Economic and Risk Analysis (DERA) at the SEC have released an announcement regarding the use of certain XBRL elements for revenue disclosures. Filers that have adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) should be using the new elements related to this ASU to tag related revenue disclosures in their financial statements and notes. However, the staff has observed that filers instead are using outdated tags under the Accounting Standards Codification Topic 605, Revenue Recognition.Continue reading "SEC Announcement Regarding XBRL Tagging for..." »
Friday, November 01. 2019
I had an interesting issue crop up this week: a client had a file that had a 21 inch indent on a paragraph, causing problems when the file was printed to PDF. When GoFiler converts your Word file to HTML, if there are a lot of spaces or tabs on a line, it can cause GoFiler to interpret it as having a large indent level. Normally this isn’t a big deal, but if the indent ends up as large as this, it can cause rendering issues. So, I was asked if there was a way we could test for this, and figured it would be an interesting problem for a blog post.
Continue reading "LDC #159:Validating HTML Indents and Margins..." »