The Securities and Exchange Commission (“SEC”) is modernizing its Edgar filing system, and part of this process could require board members, executives, and others seeking to act as Edgar filers to disclose if they’ve ever been barred from serving as directors and officers.
Nardello & Co. Managing Director & Chief Risk and Compliance Officer Michael Ramos spoke with Nick Muscavage of the Financial Times Agenda about the need for boards to bolster vetting procedures in light of the new Edgar requirements. These new requirements cover not just company employees, officers, and directors, but third-party administrators. According to Michael, “If companies choose to delegate their Edgar filing to third-party providers instead of handling it in-house, they should vet their individual administrators at these third-party firms to ensure that they’ve never received federal or state securities laws convictions and haven’t been barred from the securities industry, as such wrongdoing could prevent them from being able to file on Edgar.”
