Gersten Savage LLP

In a move designed “to provide broader and more timely public notice of important Commission actions,” the Securities and Exchange Commission announced April 25 that it plans to replace a number of paper effectiveness orders with electronic notifications.
In particular, the SEC said in a release, on May 22, the staffs of the Divisions of Corporation Finance and Investment Management will commence using the SEC’s EDGAR system to issue notifications of effectiveness for 1933 Securities Act registration statements and post-effective amendments, other than those that become effective automatically by law.
“These notifications will be posted to the EDGAR system the morning after a filing is determined to be effective. The Divisions will no longer prepare and mail paper effectiveness orders associated with these filings.”

According to the commission, registrants still will receive prompt telephone notification that their registration statements or post-effective amendments have become effective. After May 22, the agency added, its Web site–<http://www.sec.gov>–also will provide a list of filings declared effective on the previous business day.

The SEC explained that the effectiveness notices will be distributed “as an EDGAR form type called ‘EFFECT.’ Consequently, for the first time, an interested person can search for a company’s filings and be able to see when the staff declared a particular Securities Act registration statement effective.”
It added that orders relating to applications for registration as a transfer agent or as a municipal securities dealer, prepared by the commission’s Office of Filings and Information Services, also will be supplemented by electronic notifications distributed through EDGAR the morning after such applications are granted.
In the release, Corporation Finance Director John White called the move “a significant step in providing an on-line picture of a company’s filing history for both registrants and the public. The implementation of this new system will afford members of the public and participants in securities offerings prompt, reliable public confirmation that registration statements are effective.”
For more information, call John Heine in the SEC Office of Public Affairs at (202) 551-4123

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