Monday, April 30, 2012
What is an EDGAR agent? EDGAR is the Electronic Data-Gathering Analysis, and Retrieval System. This system is designed to handle the Securities and Exchange Forms that publicly held companies are required to file. What used to be done manually is now able to be done automatically online. Your Edgar agent collects, validates, indexes, accepts, and forwards appropriate forms that your company is required to submit.
EDGAR filings is a great boon for investors and companies. In the age of instant online access to nearly everything, companies did not want to wait for audit reports that took a long time for accountants to generate. With online agents, the reports are collected, synthesized, and accessible to companies and investors alike. Investors can quickly and easily view financial information of companies in which they are considering investing.
Companies are required to file these forms with the EDGAR database. Like many financial forms, these are long and complicated. Often companies don't want to spend time on them when they have to run their businesses. The solution that companies find is to have a service prepare and file the appropriate forms for them. Such services offer companies quarterly and annual filings of a variety of forms, as well as quarterly, semiannual, and annual filings for mutual funds. In addition, they will handle Quarterly Institutional Investment Managers filings. Filing agents also "EDGARize," or convert documents into the acceptable SEC filing format.
Putting everything in the correct format, meeting the deadline requirements, having all the pertinent data, and knowing which fees are applicable is an overwhelming job when added to the myriad duties company officials already have to handle. Edgar agents handle this process for them in order to ensure they are in compliance with the SEC rules. In order to get started with an EDGAR filing agent, you need to provide certain information. For instance, you will need to provide both your CIK (Central Index Key) and CCC (CIK Confirmation Code) numbers to the agent. These are unique codes given to entities in order to file forms with the SEC. Your company then emails the documents that need to be filed. The filing agent EDGARizes the documents, and you are given the opportunity to review them. After your review, the agent will file the forms with the SEC.
These services can often work very quickly, if you are in a time crunch. As with any service you hire, you should check on the reputation of the company. Also, are they knowledgeable about all aspects of the EDGAR system and filing requirements? Do they file your documents or only prepare them? Registered agents can help you handle the necessary forms, ensuring that your company is up-to-date with the SEC's regulations.