SEC finalises rule for key filings
The US Securities and Exchange Commission (SEC) has published its final rule mandating the use of structured data formats, including Inline XBRL and XML, for certain regulatory filings under the Securities Exchange Act of 1934.
Notable changes include updates to the Financial and Operational Combined Uniform Single (FOCUS) Report and the transition to electronic filing for key broker-dealer and security-based swap dealer (SBS Entity) submissions.
Key requirements include filing Form 17-H and audited annual reports (Form X-17A-5 Part III) electronically by June 2025, with a phased adoption of structured data formats (SDF) for audits based on firm size by June 2028. Self-regulatory organisations (SROs) must post certain data online, replacing outdated processes like manual signature requirements.
This overhaul stems from the SEC’s push to improve transparency, efficiency, and usability of financial data for investors and regulators alike. Inline XBRL and XML will enable enhanced data analysis, reduce manual processing, and eliminate the burdens of paper filings. Chair Gary Gensler emphasised the benefits of digital transformation, calling paper-based submissions “unnecessarily burdensome” in the digital age.
Read the SEC fact sheet here and Chair Gensler’s statement here.
