Sec. 205. Shorter-term burden reduction and disclosure simplification at the Securities and Exchange Commission; sunset
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/bill/116/hr/4476/ih/section-205·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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, the Securities Exchange Act of 1934, and the Investment Company Act of 1940. 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 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 public and internal 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.