SEC Proposes Improvements to EDGAR Filer Access and Account Management

The U.S. Securities and Exchange Commission has published a press statement to inform of an upcoming consultation on proposed changes to the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system, which is used by individuals and entities to electronically submit filings required by various federal securities laws, including the Securities Act of 1933, the Securities Exchange Act of 1934, the Trust Indenture Act of 1939, and the Investment Company Act of 1940. The purpose of the proposed changes, referred to as EDGAR Next, is to modernize and improve the way filers access and manage their EDGAR accounts, thereby also enhancing access security.
According to SEC Chair Gary Gensler the update is long overdue, as the current system has not seen significant changes in over a decade. Specifically, the current system does not provide a link to specific individuals authorized by the filer, making it challenging to identify who is responsible for the submissions. Furthermore, the current method of accessing EDGAR involves using complex combinations of codes with different functions, making it difficult to manage and monitor access. And: the access modalities are still based on „old level technology“ which raises substantial access security concerns.
Therefore, the SEC is proposing the following key amendments:
(1) Dashboard for Account Management: EDGAR Next would introduce a user-friendly dashboard where filers can manage their EDGAR accounts. Authorized individuals, designated by the filer, will be able to perform relevant actions on the filer’s behalf through this dashboard.
(2) Authorization of Account Administrators: Each filer would be required to appoint and maintain individuals as its account administrators. These administrators would have the authority to manage the filer’s EDGAR account in accordance with specific requirements outlined in the proposal.
(3) Annual Confirmation: Filers, through their authorized account administrators, would need to confirm annually that all account administrators, users, delegated entities, and technical administrators listed on the dashboard are authorized by the filer and that the provided information is accurate.
(4) Data Maintenance: Filers, through their account administrators, would have to keep their account information on EDGAR accurate and up-to-date. They will also be required to securely store information related to accessing their EDGAR account.
(5) Filing Authorization: The proposed changes would allow individuals designated as account administrators to file documents on EDGAR on behalf of the filer. Filers can also authorize other individuals as users to submit filings.
(6) Delegated Entities: Filers would have the option to authorize delegated entities to make filings on their behalf. These delegated entities would be subject to the same requirements as all other filers.
(7) Optional APIs: EDGAR Next would offer three optional Application Programming Interfaces (APIs) to facilitate machine-to-machine submissions and retrieval of filing information. Filers choosing to use these APIs would have to appoint technical administrators to manage the technical aspects.
(8) Improved Security: EDGAR Next would introduce multi-factor authentication for all EDGAR users.
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To conclude, the SEC has announced that it will open a beta software environment for filer testing and feedback, reflecting the proposed rule and form amendments, and technical changes. The proposal will be open for public comment for 60 days after its publication in the Federal Register.