On April 9, 2019, the SEC proposed rules that would modify the registration, communications, and offering processes for business development companies (“BDCs”) and registered closed-end investment companies (“registered CEFs”). The Small Business Credit Availability Act (also known as the “BDC Act”) is proposing several amendments, including the use of structured data using XBRL to make it easier for investors and others to analyze fund data.
The key items from the proposed amendment are:
- BDCs to submit financial statement information using Inline XBRL format
- CEFs and BDCs to include structured cover page information in their registration statements on Form N-2 using Inline XBRL
- Information required in a fund’s prospectus be tagged using Inline XBRL
- Filings on Form 24F-2 be submitted in Extensible Markup Language (“XML”) format
These proposed changes are a continuation of the SEC’s ongoing initiatives to promote the user of structured data formats like XBRL and Inline XBRL. As described in the proposed rule, the SEC believes that reporting in a structured data format makes financial information
- Easier for investors to analyze, and
- Helps automate regulatory filings and business information processing
The SEC anticipates that, like investors in companies and investors in registered investment companies, BDC investors would benefit from the availability of relevant information in XBRL.
Read the full proposal.