Did you know that each of your Section 16 insiders – as well as companies themselves – are required to file annual EDGAR confirmations? This requirement kicked in when EDGAR Next officially launched last year. Here are six FAQs that I drummed up pulling information from this SEC EDGAR web page:
- When is the Annual Confirmation Due? – This confirmation is due by the end of the quarter the filer selects as their ongoing confirmation deadline: March 31, June 30, September 30 or December 31 (or the next business day if the date falls upon a weekend or a holiday when EDGAR is not operating). It’s easy to figure out a particular filer’s annual confirmation due date as its displayed at the top of a filer’s dashboard.
- What Does the Annual Confirmation Say? – Two things. One is that the users, account administrators, technical administrators and/or delegated entities listed on the filer’s dashboard are authorized by the filer to act on its behalf; and two that all information related to the filer reflected on the filer’s dashboard is accurate.
- Can Someone Else Submit an Annual Confirmation on a Section 16 Insiders Behalf? – Yes, any one of the filer’s account administrators can complete annual confirmation for the filer.
- Can an Annual Confirmation Be Submitted Early? – Yes, an account administrator doesn’t need to wait until the deadline to submit an annual confirmation – it can be submitted on earlier date within the quarter when a confirmation is due.
- How Does the Annual Confirmation Get Submitted – Follow the nine steps listed near the bottom of this SEC EDGAR Filer Management web page.
- What If an Annual Confirmation Fails to Be Submitted Timely? – First, a delinquent filer has a 3-month grace period in which to complete confirmation. During this grace period, the filer’s account administrators will receive daily reminders to make the submission. During the 3-month grace period, filers will maintain EDGAR access, the ability to make submissions and the ability to take actions on the filer’s account as they had previously.
But after the 3-month grace period, bad things happen. The filer’s account will be deactivated – and the filer will be required to re-apply for access to file on EDGAR on Form ID. If SEC staff grants the Form ID, the filer will continue to have the same EDGAR account number/CIK previously assigned and the account’s filing history will be preserved.
Authored by
Broc Romanek