CEF Tagging Guide Now Available for Download

Skip to blog entries
Skip to archive page
Skip to right sidebar

Thursday, July 28. 2022

CEF Tagging Guide Now Available for Download

In April 2020, the SEC adopted rules in its Release 33-10771 that revised the registration, communications, and offering processes for closed-end investment companies (CEFs) and business development companies (BDCs) under the Securities Act of 1933. In addition to introducing new XML-based Form 24F-2, CEF and BDC entities will now be required to tag financial reporting information in a structured data format in their submissions to the EDGAR system. As the deadline for this change approaches, Novaworks has created a free guide to aid companies in creating their first structured data reports.

Under the newly adopted SEC rules, the following structured data requirements for registered CEFs and BDCs were introduced:

BDCs, like operating companies, must submit financial statement information using the Inline XBRL format, which is a combination of traditional HTML with XBRL tagging embedded directly in the human-readable report
registered CEFs and BDCs must include structured cover page information in their registration statements on Form N-2 using the Inline XBRL format
certain information required in an affected fund’s prospectus must be tagged using the Inline XBRL format

Compliance with the new Inline XBRL structured data reporting requirements for financial statement, registration statement information, and prospectus information begins August 1, 2022 for affected funds that are eligible to file a short-form registration statement. For all other affected funds subject to these structured data reporting requirements, the compliance date is February 1, 2023.

This may be the first time many of the affected registrants are faced with preparing financial filings in Inline XBRL. Because of that, Novaworks’ has released a comprehensive guide entitled Securities Offering Reform for Closed-End Investment Companies - Structured Tagging for CEFs and BDCs . This guide offers illustrative examples that lead readers through tagging sample narrative blocks and tables with elements from the CEF Taxonomy. Through helpful color-coding and graphical guides, readers can learn what aspects of their data must be tagged in this new format and understand how the XBRL data facts are formed. The guide also provides deeper insight into the new CEF Taxonomy and tagging requirements for those more experienced with XBRL. We encourage all interested parties download this free document to help make their transition to Inline XBRL smoother and simpler.

In addition, our GoFiler Product Suite can help you meet the upcoming financial reporting requirements with ease. Form 24F-2 and the CEF Taxonomy are already supported by our software with powerful tools to create, edit, and file the necessary forms to EDGAR. For more information, please contact sales at sales@novaworkssoftware.com.