Data Tagging Recommendations by SEC’s Investor Advisory Committee

Section 911 of the Dodd-Frank Act established the new Investor Advisory Committee to advise the Securities and Exchange Commission on regulatory priorities and on initiatives to protect investor interests and to promote investor confidence and the integrity of the securities marketplace. The Dodd-Frank Act authorizes the committee to submit findings and recommendations for review and consideration by the Commission.  The Investor as Owner Subcommittee provided a three part recommendation to the SEC.  The recommendations include:
  1. Adopt a “Culture of Smart Disclosure” that promotes the collection, standardization, and retrieval of data filed using machine-readable data tagging formats
  2. Take steps to reduce the costs to file the tagged data
  3. Give immediate priority to tagging of data that would provide increased transparency with respect to corporate governance (allow tagging of portions of the proxy statement and proxy voting records)