Mutual Funds Submit Interactive Data to SEC

As I've cited in previous posts, SEC Chair Christopher Cox has been a heavy promoter of XBRL technology, or what he calls "Interactive Data".  It's been slow getting out of the gate.  A trial program to get companies to submit their filings thorugh XBRL only totalled about 30 companies, and most of those, such as Microsoft, have a vested interest in promoting XBRL technology.

An August 21, 2007 press release indicates that some mutual fund companies have begun submitting risk/return data to the SEC through XBRL.  This data will reside in the SEC's EDGAR database and will be available to the public.

An excerpt from the press release:

The Commission voted unanimously on June 20, 2007, to adopt final rule amendments that enable mutual funds to submit risk/return summary information from their prospectuses using interactive data. The risk/return summary at the front of every mutual fund prospectus includes information about a fund's investment objectives and strategies, risks, costs, and historical performance.

All of the new, interactive mutual fund data will be made available to the public on the SEC's online database, named EDGAR, and to subscribers of EDGAR's high-speed data dissemination service. The Commission will monitor how the data can be used to help inform mutual fund investors and will consider whether further steps are necessary to increase accessibility.

Interactive data is powered by XBRL, a computer software language that labels companies' financial and other data with codes from standard lists so that investors and analysts can more easily locate and analyze desired information. The SEC commenced its XBRL Voluntary Financial Reporting Program in April 2005, allowing public companies to voluntarily submit interactive data documents as exhibits to periodic reports and other filings.

Although Christopher Cox and the SEC would like greater enthusiasm for XBRL, this is certainly a step in the right direction.  At some point the SEC may mandate XBRL submissions, but for now companies have the choice to move to XBRL.