M2 Compliance Supports SEC's EDGAR Next Initiative to Enhance Filing Security and Authorization
July 12 2024 - 1:10PM
M2 Compliance, a leader in regulatory compliance and financial
printing solutions, is pleased to announce its support for the
SEC's proposed EDGAR Next initiative, which aims to introduce
significant technical and process changes to the EDGAR system.
What is EDGAR Next?
In 2021, the SEC requested public comment on
potential changes to the EDGAR system, focusing on filer access and
account management. This initiative, known as “EDGAR Next,” aims to
improve EDGAR security and filing authorization by identifying the
individual who submits a filing.
M2 Compliance and the broader filing community
responded to the SEC’s request for comment, initiating a two-year
dialogue to refine the needs of filers while meeting the SEC’s
goals. On September 13, 2023, the SEC officially proposed the EDGAR
Next initiative (“EDGAR Filer Access and Account Management”), with
comments due by November 21, 2023. M2 Compliance submitted a
detailed comment letter to the SEC, suggesting technical and
process enhancements to improve EDGAR Next functionality.
EDGAR Next Proposal Details
Once implemented, EDGAR Next will represent one
of the most significant changes to the SEC filing process. The SEC
estimates that over 200,000 active filers will need to comply with
the new requirements. Following the adoption of the final rule,
individuals will be required to access the EDGAR system securely
using individual login credentials and multi-factor authentication
(MFA). Additionally, the proposed rule will require filers to:
- Approve and designate individuals
to act as Account Administrators.
- Maintain their account on a
dashboard in the EDGAR system.
- Delegate authority to file on their
behalf.
EDGAR Next Beta Testing
During the comment period, the SEC opened a Beta
testing environment for EDGAR Next that mirrors the proposed
changes. This environment allows filers and filing agents to
evaluate the details and suggest improvements. M2 Compliance’s
participation in this Beta testing helped identify potential issues
and propose enhancements, as outlined in our SEC comment letter. We
encourage all filers to log in and test the EDGAR Next Beta
environment, open through March 15, 2024, to prepare for the final
rule.
Final Rule Timing and Next
Steps
With the comment period now closed, the SEC will
review and consider the submitted letters. While this process may
take some time, the SEC has prioritized EDGAR Next and is expected
to move forward soon. It is possible that the SEC may adopt a final
rule in early 2024, initiating a transition period for filers.
Based on the proposal, the transition to EDGAR Next would begin
with a one-month cooling-off period followed by a six-month
transition period. Filers are encouraged to start preparing now for
EDGAR Next.
Resources
- EDGAR Next Beta login page
(requires Login.gov access)
- SEC EDGAR Next overview page
- 2021 Request for Comment
- 2023 SEC proposed rule
- 2023 Comment letters
For more information about M2 Compliance’s
services and support for EDGAR Next, please visit our website at
www.m2compliance.com or contact:
David McGuire, CEOM2 COMPLIANCE LLC1018 Ashford
Ave. 3A-12 San Juan, Puerto Rico 00907Tel: (754) 243-5120Fax:
(754) 243-5135 www.m2compliance.com