SEC Proposes XBRL for Specialised Capital
The SEC has proposed reforms to the rules governing Business Development Companies (BDC) and Registered Closed-End Funds that would require these funds to report information in structured data.
The amendment is in support of the SEC’s implementation of the Small Business Credit Availability Act and the Economic Growth, Regulatory Relief, and Consumer Protection Act. BDC’s primarily invest in small and developing companies, so ensuring these funds have an efficient approach to raising capital and good investment communication should help support small business.
The amendments include a more flexible offering process to help capital formation, a streamlined registration process to help sell securities quickly and further harmonisation of the disclosure and regulatory framework for these funds.
Affected funds would be required to use Inline XBRL to tag registration statement information, similarly to mutual funds and exchange traded funds. BDC’s would also need to submit financial statement information using Inline XBRL, as operating companies do. The proposal would also alter periodic reporting requirements, with affected funds being required to include certain key prospectus disclosure in their annual reports.
Here at XBRL International we fully support moves to increase transparency in small business disclosure. Reporting in digital, searchable, and comparable data is key to increasing investment in small business.
The comment period is open for 60 days from 20 March. Read more and comment here.