SEC project to rethink company reporting
Jinfo Blog

1st July 2008

Item

While many information professionals in Europe may concentrate on their local markets there can be few who do not need to research US companies from time to time. Therefore the latest announcement from the Securities and Exchange Commission (SEC) http://www.sec.gov on its enquiry into the way it acquires information is worth noting. By the end of this year a preliminary study will have been carried out into how public companies, mutual funds, brokers, and other regulated entities supply data to the SEC and how, in turn, it makes that data available to investors and to the markets http://digbig.com/4xcxk. Once the first phase of the study is completed a follow-on advisory committee will be appointed to consider issues in more detail through a public and consultative process. The study, called the ‘21st Century Disclosure Initiative’, will be lead by Dr. William Lutz of Rutgers University, supported by a dedicated staff of experts. The intention is to improve the usefulness and timeliness of disclosure for investors, and to streamline and modernise the collection of information from companies and regulated entities. All existing SEC forms and reporting requirements will be reviewed. The opportunities presented by technology will be examined, particularly how to get the best real-time distribution of data to investors and researchers. The study will also examine how to integrate public access to data into the SEC’s proposed post-EDGAR architecture for research. At the time of writing there is no indication as to who will constitute the expert staff. It is to be hoped that, if not now, then, as part of the follow-on advisory committee, the voice of the information professional researcher and the voice of the company information provider will be heard. This is too good an opportunity to have our say, for our community to let it pass by.

« Blog