The SEC has proposed updates to its Electronic Data Gathering Analysis and Retrieval (EDGAR) system on September 13, 2023. Discover why the SEC plans to change EDGAR, reasons for the new developments, the timeline for SEC EDGAR Next and how to prepare.
What Is EDGAR Next?
The SEC is proposing rule and form amendments concerning access to and management of accounts on the Commission’s EDGAR system that are related to potential technical changes to EDGAR. The Commission is seeking to enhance the security of EDGAR and improve the ability of filers to securely manage and maintain access to their EDGAR accounts, facilitate the responsible management of filer credentials, and simplify procedures for accessing EDGAR by making several key changes, summarized below.
Logins
Currently, companies use a CIK and password to log into EDGAR. Under the new system, any individual needing to access the filer management and EDGAR filing websites would require a login.gov account.
New account management roles
Companies must set account administrators who manage EDGAR accounts and handle things such as access control. Account administrators are charged with adding or removing users and technical administrators, delegating authority to file, and confirming the accuracy of information every year.
Use of APIs
This EDGAR Next update will provide APIs (application programming interfaces). When using third-party filing applications APIs are required for machine-to-machine communication with EDGAR including submission of filings and retrieval of related information.
If a company uses APIs, it will need to establish technical administrators who take the responsibility of managing the filer API token.
Timeline of EDGAR Next Implementation
From now through November 21, 2023, an open comment period allows users to give feedback on the proposed changes.
The SEC opened a sandbox testing environment that duplicates the changes they've proposed. This is open now. Interested users can log in and experience the beta environment for themselves.
The beta program is available through March 15, 2024, for those interested in trying the updated version of EDGAR Next before the updates go live.
How to Prepare for EDGAR Next
All filers will be impacted by the SEC EDGAR new requirements. Companies are strongly encouraged to monitor these changes and develop a plan to implement the new rules to minimize the strain that comes with getting everyone who touches EDGAR their own login.gov credentials. When relying on a third-party vendor for filing, ensure that your CIK is delegated in time to meet a filing deadline.
The SEC hosted an informational webinar on September 19, 2023, to explain the new changes. The SEC posted the webinar on its YouTube channel to introduce the proposed changes. Once you have viewed the webinar, for further information use these tips to prepare:
- Participate in the EDGAR Next beta environment to understand how the changes impact the filing process.
- Report any bugs you discover to the SEC by email at EDGARNextBeta@sec.gov.
- Identify key personnel to hold roles as account administrators, users and technical administrators (if need be).
- Stay informed of further changes on the SEC’s website or by checking back here. We will do our best to summarize the highlights.
DFIN offers SEC filing software used for preparing submissions and filing on EDGAR that uses multifactor authentication, access control and other security best practices. Visit the DFIN Product and Solutions page. We are excited to see the SEC adopt EDGAR Next updates with modernized security enhancements.
We understand, however, that software updates often mean changes to the way it’s always done. The learning curve can be minimized by keeping up with the changes as they're in development. We are committed to doing everything we can to help our software users plan and prepare for the SEC next generation EDGAR system.
