In 2024, the SEC will use investigative tools powered with artificial intelligence to better identify companies that violated disclosure requirements. Similar to speed cameras enhancing traffic control for police, this data tagging technology—known as Inline XBRL—will allow the Securities and Exchange Commission to more effectively analyze large quantities of corporate disclosures in support of the agency’s enforcement activities.
As we approach 2024, the extensive list of corporate filings that are now required to be filed in the Inline XBRL format will continue to grow. As a result of the avalanche of SEC rulemaking, many public companies likely overlooked, or didn’t fully appreciate, the seemingly simple data tagging provision stated in most of the recently finalized rules, such as the SEC’s cybersecurity risk governance rule or its proposed climate change disclosure rule.
But this data tagging format on corporate filings will enhance the SEC’s ability to initiate enforcement actions against public companies—which have already begun to increase in frequency since the amended Inline XBRL format was fully implemented.
‘Enforcement 40’ for 2020
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