The SEC’s Electronic Data Gathering, Analysis and Retrieval system, better known by its acronym of EDGAR, is not in compliance with requirements from a 2018 law, the agency itself reported in a congressionally-mandated report this month. The SEC does say that it plans to fix the site, however.
As the SEC increasingly hones its ability to gather data and finds new ways to analyze it, Commissioner Hester Peirce, in a recent speech, waved a yellow caution flag. She challenged not only the amount of data the agency collects, but what the SEC’s attorneys and economists do with it.
SEC chairman Jay Clayton on November 14 issued a nuanced statement?rejecting a request from the national securities exchanges and FINRA to delay the initial deadline of the Comprehensive Audit Trail - better known as the CAT - by a year, and other deadlines by a year or more. His decision leaves at least the short-term implementation of the much-discussed high-tech tool up in the air.
The asset management industry, including the SEC, is weighing the impact of the cybersecurity breach that agency chair Jay Clayton recently disclosed to the public (ACA Insight, 9/25/17). In the wake of the disclosure, the SEC announced a new initiative, Clayton testified before a Senate committee, and industry leaders and observers speculated as what it all might mean for future regulation and oversight, including the launching of the agencys Comprehensive Audit Trail (CAT).
SEC enforcement already relies on technology. That reliance will only grow in future years, with the agencys use of data analysis increasingly married to machine learning and artificial intelligence. Advisers should be aware that actions they take will often turn up in data, and that the SEC can be counted on to use that data in ever-more sophisticated ways.