The US Securities and Exchange Commission (“SEC”) recently released its strategic plan for fiscal years 2022-2026. As this news article notes, cybersecurity risk will continue to be a continued focus for the SEC as it continues to move to the cloud and modernize its regulatory technology (“RegTech”).
While the plan also mentions expanding disclosure and analytic tools as well as broadening the use of machine learning and artificial intelligence, there is no discussion about technology standards. Such an omission is a surprise to the BRC FinTech community.
The SEC staff is currently discussing what technology modernizations are needed for machine-readable reporting, especially with regard to environmental, social, governance ("ESG"), and climate change concerns. These discussions possibly might include the Object Management Group ("OMG")'s proposed Standard Business Report Model ("SBRM") specification (which probably will be reopened next week at the OMG September 2022 technical meetings).
Please reach out to the Brass Rat Capital staff if you would like more information on machine-readable reporting, digital transformation, RegTech standards, or the so-called “holy grail”, “algorithmic regulation.”