WASHINGTON, Oct 13 (Businesshala) – The US Securities and Exchange Commission (SEC) said on Wednesday that it has voted to adopt a rule to modernize the process for paying filing fees when operating and investment companies have Engage in transactions, including offering of registered securities, tender offer. , and mergers and acquisitions.
The SEC amendments, which typically go into effect on January 31, 2022, will require filers to submit the information needed to file fee calculations in a separate interactive format, with some updates in the coming years, called Inline Extensible. Known as Business Reporting Language. (XBRL), the agency said.
It said the changes will improve fee preparation and payment processing by increasing the speed, accuracy and usability of financial disclosures, and ultimately reduce costs.
Wednesday’s unanimous vote to adopt the rule came after it was proposed in October 2019 to change the way the SEC processes thousands of filings from public companies and other issuers.
SEC Chairman Gary Gensler said in a statement, “Historically, SEC employees manually calculated fees associated with registered securities offerings and tender offers, while filers had to manually input numbers, a process Which invites opportunities for errors.
Wednesday’s measure is expected to be appreciated by industry groups, who have long argued that modernization will lead to increased legitimacy and better efficiency of payment processing.
“Today’s rule will convert these forms into a structured data format. As a result, the SEC will be able to automatically detect errors and calculate fee amounts,” Gensler said.