Overview
Title
Submission for OMB Review; Comment Request; Extension: Form ID-Application for EDGAR Access
Agencies
ELI5 AI
The SEC wants to keep using a form that helps people and companies do important paperwork online, and they need people to share their opinions about this by March 27, 2025.
Summary AI
The Securities and Exchange Commission (SEC) is seeking an extension on the approval for collecting information via Form ID, as required by the Paperwork Reduction Act of 1995. Individuals and companies use Form ID to gain access to file on the SEC's EDGAR system, which is crucial for making certain disclosures under federal securities laws. Each year, about 73,600 Form ID submissions are expected, with each taking about 0.6 hours to complete, resulting in a total of 44,160 hours of effort annually. The public can review and comment on this information collection request through the provided online link or via email by March 27, 2025.
Keywords AI
Sources
AnalysisAI
Summary of the Document
The document is a notice from the Securities and Exchange Commission (SEC) seeking public comment on a request to extend the approval for collecting information through Form ID. This form is essential for entities that wish to file information electronically using the SEC's Electronic Data Gathering, Analysis, and Retrieval system (EDGAR). Each year, the SEC estimates that approximately 73,600 Form ID submissions are made, with each submission requiring about 0.6 hours to complete, resulting in an estimated annual burden of 44,160 hours.
Significant Issues and Concerns
Several issues arise from the document. First, while the notice references the Paperwork Reduction Act's requirement for a valid control number, it lacks details on the implications for entities that fail to comply, raising questions about how compliance is enforced.
Additionally, the document includes a URL for public comments but embeds it within a sentence without emphasizing it as a clickable link. This could hinder easy access and diminish public participation in the comment process.
Moreover, the document assumes the reader's familiarity with terms like "EDGAR," "CIK," and "EDGAR access codes" without providing definitions. This assumption could alienate readers unfamiliar with SEC processes, making it challenging to fully comprehend the notice's significance.
Impact on the Public
For the general public, this notice primarily concerns transparency and regulatory processes associated with the financial disclosures required by federal securities laws. The cumbersome language and lack of context may deter public engagement, despite the SEC's call for comments.
Impact on Specific Stakeholders
For stakeholders directly involved in financial reporting and disclosures, such as corporations, legal firms, and financial advisors, this document highlights the procedural necessity of completing Form ID accurately. An extension of approval for this form helps ensure continuity in accessing the EDGAR system. However, the unclear burden estimates could lead to confusion regarding resource allocation for compliance.
Entities required to file could face challenges due to the ambiguity surrounding compliance implications. For professionals managing these filings, the lack of definitions for technical terms presents an obstacle that might necessitate additional research or assistance, potentially increasing administrative burdens.
In conclusion, while the document addresses procedural formalities for accessing a critical SEC system, the lack of clarity and unfriendly formatting could limit public understanding and participation, particularly among those less acquainted with regulatory processes. Those directly impacted by Form ID's requirements may experience ongoing challenges in meeting the outlined expectations without clearer guidance from the SEC.
Issues
• The document references the Paperwork Reduction Act and the requirement for a valid control number but does not clearly explain the implications for entities if they fail to comply or how compliance will be enforced.
• The document provides a URL for public comments but the URL is embedded in a sentence and not highlighted or formatted as a clickable link, which might make it inconvenient for readers to access.
• There is a lack of context or explanation about what EDGAR is and why access to it is necessary, which might be unclear to readers unfamiliar with SEC processes.
• The explanation of the estimated burden (73,600 Form ID filings annually translating to 44,160 hours) lacks detail on how these estimates were derived, leaving it ambiguous and potentially confusing.
• The notice uses technical terms such as 'CIK' and 'EDGAR access codes' without definition, which could be difficult for lay readers to understand.