Little Reforms Have Big Implications at SEC
The Director of the Securities and Exchange Commission’s 21st Century Disclosure Initiative, Dr. Bill Lutz, was on the Marquette University campus May 4. He was kind enough to give an update on the Initiative over lunch to a group of faculty from the Law School and the College of Business Administration. Dr. Lutz is an interesting choice to lead the SEC’s effort to reconceptualize the manner in which the agency collects, analyzes, and disseminates financial information. He is Professor of English emeritus at Rutgers University, and one rarely thinks of the words “English language” and Form 10-K in the same breath.
The 21st Century Disclosure Initiative finished its Report in January 2009. You can read the Report here: www.sec.gov/spotlight/disclosureinitiative/report.shtml. The recommendations in the Report are both modest and potentially revolutionary. Today the SEC continues to operate under the same system of preparing and filing specific disclosure documents such as annual reports and quarterly reports that was instituted in 1934. In the 1990s, the Commission adopted EDGAR, a system for filing and viewing each individual report electronically. However, the “document centric” format remains and anyone searching for specific items of company data today on EDGAR still has to typically scroll through hundreds of pages to find what they are looking for.
The Report by the Initiative proposes the adoption of company-specific databases for each company required to file reports with the SEC.