Sec. 205. Shorter-term burden reduction and disclosure simplification at the Securities and Exchange Commission; sunset
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/bill/114/hr/2477/ih/section-205·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than one year after the date of enactment of this Act, the Securities and Exchange Commission, shall, by rule, adopt a data standard that is both human-readable and machine-readable, and complies with the requirements under the amendments made by section 201, with respect to any corporate financial data for which the Commission was using the eXtensible Business Reporting Language standard as of the date of enactment of this Act. The Securities and Exchange Commission may scale data reporting requirements under this section in order to reduce any unjustified burden on emerging growth companies, lending institutions, accelerated filers, smaller reporting companies, and other smaller issuers, as determined by the study required under subsection (c), while still providing searchable information to investors.
In issuing the regulations required under the amendments made by this section, the Securities and Exchange Commission shall seek to minimize disruptive changes to the persons affected by such regulations. Within six months after the date of the enactment of this Act, the Commission shall establish a program to improve the quality of corporate financial data filed or furnished by issuers under the Securities Act of 1933 and the Securities Exchange Act of 1934. The program shall include the following:
The designation of an official in the Office of the Chairman responsible for the improvement of the quality of eXtensible Business Reporting Language data filed with or furnished to the Commission by issuers. The issuance by the Division of Corporation Finance of comment letters requiring correction of errors in data filings and submissions, where necessary. In establishing the program under this section, the Commission shall seek to— improve the quality of data filed with or furnished to the Commission to a commercially acceptable level; and make data filed with or furnished to the Commission useful to investors.
Not later than six months after the date of the enactment of this Act, and every six months thereafter, the Commission shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on the use of machine-readable data for corporate disclosures. Each report required under paragraph
(1)shall include— an identification of which corporate disclosures required under section 7 of the Securities Act of 1933, section 13 of the Securities Exchange Act of 1934, or section 14 of the Securities Exchange Act of 1934 are expressed as machine-readable data and which are not; an analysis of the costs and benefits of the use of machine-readable data in corporate disclosure to investors, markets, the Commission, and issuers; a summary of enforcement actions that result from the use or analysis of machine-readable data collected under section 7 of the Securities Act of 1933, section 13 of the Securities Exchange Act of 1934, or section 14 of the Securities Exchange Act of 1934; and an analysis of how the Commission is itself using the machine-readable data collected by the Commission. On and after the end of the 7-year period beginning on the date of the enactment of this Act, this section shall have no force or effect.