iXBRL Beta Testing Countdown: Streamlining Filing Fee Disclosures for October 2023

September 8, 2023by Team IRIS CARBON0

The United States Securities and Exchange Commission (SEC) have long been at the forefront of regulatory efforts to enhance transparency and efficiency in the financial markets. In a significant move towards modernization, the SEC recently announced the commencement of the EDGAR BETA Testing for the Filing Fee Modernization Rule. This rule aims to revamp the existing fee structure for certain filings, aligning it with the financial industries and investors’ evolving needs. Let’s delve into the details of this ground-breaking initiative.

Filing Fee Modernization Rule: An Overview

The rule for Filing Fees and Payment Method Modernization seeks to streamline the filing fee structure for certain registration statements and transactions submitted by public companies, mutual funds, and other market participants. The current fee structure has remained largely the same for decades, leading to inefficiencies and misalignments with the actual costs incurred by the SEC in processing these filings.

The EDGAR (Electronic Data Gathering, Analysis, and Retrieval) system, which serves as the primary platform for submitting and accessing financial disclosures, is now undergoing Beta testing to incorporate the necessary changes. The SEC has recognized the significance of these updates in promoting capital formation, safeguarding investors’ interests, and maintaining the overall integrity of the securities market.

The Objectives of EDGAR BETA Testing

Edgar Beta Testing aims to assess and fine-tune the proposed changes to ensure a seamless transition once the Filing Fee Modernization Rule is officially implemented. This trial phase will involve collaboration between the SEC and various market participants, including public companies, law firms, accounting agencies, and financial technology firms. The feedback gathered during this period will be invaluable in identifying any potential challenges and making necessary adjustments.

The EDGAR Filing Fee Beta will open on October 2, 2023, and close on December 22, 2023. To participate in this, filers should send an email to FilingFeeBetaFeedback@sec.gov no later than August 31, 2023, that:

  • Includes the filer’s name and CIK
  • It is sent from the email address corresponding to their Contact for EDGAR Information, Inquiries, and Access Code (EDGAR Contact) listed in EDGAR.

Key Benefits of the Filing Fee Modernization Rule

  • Accurate Cost Recovery: By aligning filing fees with the costs incurred by the SEC in processing various filings, the rule ensures a fair and precise cost recovery system. This enhances the SEC’s ability to carry out its regulatory responsibilities efficiently.
  • Encouraging Capital Formation: Lowering fees for certain filings, such as those of small businesses or emerging companies, can stimulate capital formation and promote entrepreneurship.
  • Simplified Fee Structure: The modernization effort aims to simplify the fee structure, making it more transparent and understandable for market participants.
  • Enhanced Investor Protection: By optimizing the fee structure, the SEC can allocate resources more effectively, enabling better investor protection and market oversight.

Under these new regulations, nearly all filers who submit registration statements or filings with associated fees to the SEC will be required to use Inline XBRL (iXBRL) to tag their fee data. However, there are two exceptions:

  1. Asset-backed issuers (ABS) have the option to voluntarily tag their fee data but are not obligated to do so.
  2. Closed-end funds filing on Form N-2 may choose to disclose their fees annually, reporting them to the SEC on Form 24F-2 in XML format, rather than including them in their registration statements and prospectuses.

These new requirements significantly broaden the application of iXBRL beyond its current use in financial statement tagging, encompassing a wider range of filings under the 1933 Securities Act and any filings involving fee-bearing proxies or tender offers.

Stage 1: Implemented Consistent Fee Tables Filed as an Exhibit

On Jan. 31, 2022, filers needed to comply with the first stage of the rule. The SEC required filers to:

  • Report fee data in an exhibit instead of on the filing cover.
  • Format the data consistently.

These changes were designed to create fee tables that were well structured to be effectively tagged in iXBRL.

Stage 2: Planned Beta testing of fee data tagged in iXBRL

On June 16, 2023, the SEC announced the next stage of the rule implementation: an EDGAR Filing Fee Beta testing environment. The Beta environment gives filers the opportunity to test constructing and submitting filing fee exhibits in iXBRL.

The Beta environment is only for testing, and filers will continue to submit filing fee exhibits in HTML via EDGAR, during the testing period.

Key dates

  • Filers must sign up for the Beta testing no later than Aug. 31, 2023
  • Information related to completing Beta testing will be published by the SEC in September 2023
  • Beta testing must be completed between Oct. 2, 2023 – Dec. 22, 2023

(Review the full announcement from the SEC for details on how to sign up for Beta testing.)

Stage 3: Phase-in iXBRL tagging of fee data in live submissions

The SEC is phasing in the iXBRL tagging of fee data based on filer status. All filers will have the opportunity to submit live, tagged fee data after the Beta testing period and prior to the mandatory compliance dates.

  • The voluntary compliance period for submission of iXBRL fee exhibits starts Jan. 31, 2024
  • Large, accelerated filers are required to begin tagging their filing fee exhibits on July 31, 2024
  • All other filers are required to begin tagging on July 31, 2025


In conclusion, the iXBRL Beta Testing Countdown for October 2023 heralds a significant shift in financial reporting and transparency. It is critical for issuers and legal staff who manage transactional filings to understand these changes and be prepared to comply with the upcoming SEC requirements. Participating in the SEC Beta testing and early voluntary tagging of fee data can help ensure that filings will be accepted with no issues. This evolution promises to enhance accuracy, cost recovery, capital formation, and investor protection. Staying informed about key dates and compliance requirements will be essential as we navigate this transformative journey toward a more modernized financial reporting era.

Explore our blog, “Top Challenges of SEC Financial Reporting and How to Overcome Them,” and keep an eye out for upcoming posts diving deeper into the Beta testing environment and detailed implementation plans.

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