Preparing for the Next EDGAR Launch: What Filers Need to Know
filings on behalf of the filer to a delegated entity, such as a law firm or service provider. The delegating filer must provide the delegated entity with the appropriate authorization and Credentials, and the delegated entity must certify that they will act in accordance with the Securities Exchange Act of 1934 and SEC rules. The delegating filer remains responsible for all submissions made by the delegated entity on its behalf.
The changes introduced by EDGAR Next are aimed at enhancing the security and efficiency of the EDGAR system. By limiting access to authorized individuals only and implementing multifactor authentication methods, the SEC aims to align EDGAR security practices with federal agency standards. The requirement for individualized account credentials and the prohibition of credential sharing will help track individuals taking actions on behalf of filers, improving overall account security.
The Form ID process has also been updated to require more detailed information from filers, ensuring that only authorized individuals are granted access to EDGAR. Each filer must designate account administrators, users, and technical administrators to manage their EDGAR accounts and API connections. Account administrators play a crucial role in overseeing the filer’s account, managing user access, generating custom filing codes, and handling API connections. They must confirm the authorization of all users and entities annually to ensure accurate representation on the EDGAR Next dashboard. Failure to confirm within the specified deadline may lead to the deactivation of the filer’s account.
Users appointed by account administrators are authorized to make submissions on behalf of filers, while technical administrators handle API connections for those filers opting to use APIs for submissions. The role of technical administrators is to manage API connections and issue API tokens to connect the filer to the system. Delegated entities can also manage filings on behalf of filers, provided they receive proper authorization and adhere to SEC regulations. However, the delegating filer remains ultimately responsible for all submissions made by the delegated entity.
Overall, the EDGAR Next changes set to take effect on March 24, 2025, will impact all EDGAR filers, including SEC reporting companies, investment funds, Section 16 insiders, shareholders with filing obligations, and filing agents. It is essential for filers to familiarize themselves with these amendments, designate authorized individuals to manage their accounts, and ensure compliance with the new rules and regulations. By adhering to these changes, filers can enhance the security and efficiency of their EDGAR submissions, aligning their practices with modern security standards and best practices.