Digital disclosures coming soon for US business development companies
Readers may recall that in 2020 the US Securities and Exchange Commission (SEC) adopted a new rule extending digital reporting to business development companies (BDCs) and other closed-end funds (CEFs). BDCs will be required to file financial statements in Inline XBRL, as well as certain prospectus items. To enable this, the SEC has developed a new Closed-End Fund Taxonomy and updated the EDGAR submissions portal accordingly.
The rule was effective from 1 August 2020, meaning that it is now about to come into force for certain funds: “affected funds that are eligible to file a short-form registration statement will be required to comply with those provisions 24 months after the effective date, or August 1, 2022. All other affected funds subject to these requirements must comply 30 months after the effective date, or February 1, 2023.”