Improving its current disclosure regime, a renewed focus on compliance outreach, and integrating the latest technology are among the initiatives highlighted by the Securities and Exchange Commission in its newly published Draft Strategic Plan, an outline of strategic goals through 2018.

The plan was prepared in accordance with the Government Performance and Results Modernization Act, which requires federal agencies to outline their missions, planned initiatives, and performance goals for a five-year period. The SEC outlined more than 70 initiatives intended to improve its efficiency and effectiveness.

Improving Disclosure

Continuing a process that began last year, the SEC will look for ways to improve the usefulness of its disclosure regime. The Commission will also design and implement new disclosure requirements for specialized categories of issuers and continue to evaluate and improve the disclosure demands for securitized financial products and other complex financial instruments.

The SEC will also continue to modernize its IT systems and implement enhancements to EDGAR and SEC.gov to facilitate access to, and utilization of, disclosure documents. A new filing system, optimized for data retrieval and analysis, will help users create filings that are appropriate to their purpose and allow for data extraction and automated analysis. New filings structured for automated data retrieval and analysis will eventually replace all filings submitted through the EDGAR system.

Better Technology

Citing its need for the technical capability to electronically organize and retrieve an extraordinary volume of documents obtained in the conduct of investigations, the SEC plans to enhance its current electronic discovery tools, and improve its document storage, organization, and analytic capabilities. The SEC will create a repository of documents and data that is more widely available across cases and with other business functions as appropriate.

Compliance Outreach

To expand outreach efforts that promote compliance practices, the SEC will increase proactive communications with registrants and their personnel, including chief compliance officers, senior executives, and board members. These efforts will include: compliance outreach events; disseminating risk alerts; detailing areas where examiners have identified significant compliance deficiencies, best practices identified by examiners or industry groups, and rule changes; and raising registrant awareness of the seriousness of certain exam findings by holding post-examination compliance conferences.

Accounting Standards

The SEC also expects to continue its role in the establishment of high-quality accounting standards. In overseeing the Financial Accounting Standards Board, the SEC will strengthen and support its independence. Due to the increasingly global nature of the capital markets, the agency will work to promote higher quality financial reporting worldwide and consider, among other things, whether a single set of high-quality global accounting standards is achievable.

Risk Assessment

To enhance surveillance and risk assessment capabilities, the SEC will seek greater access to data and insights from a variety of sources, including data from registrants, self regulatory organizations, and commercial vendors. The SEC will also improve upon the process for receiving, processing, and acting upon tips, complaints and referrals so they are handled consistently and appropriately through examinations or enforcement investigations. This information will also be used to spot trends and patterns about potential issues or violations that may warrant further action.

Staff Training

To bolster staff expertise, the SEC will continue to develop and implement specialized teams that focus on particular market issues. With targeted training, staff will be able to obtain specialized certifications, such as Certified Fraud Examiner and Chartered Financial Analyst. The SEC will also implement programs and initiatives focused on employee engagement and retention.

Other initiatives:

Considering issues related to the mechanics of proxy voting and shareholder-company communications, including the role of proxy advisory firms

Considering revised disclosure obligations for the use of equity swaps and other derivative instruments

Improving the regulatory regime for the use of derivatives by mutual funds, exchange-traded funds, and other registered investment companies

Through a review of proposed rule changes from self-regulatory organizations, ongoing dialogue with SROs, and rulemaking, consider ways to more effectively oversee the system of self-regulation and address potential conflicts of interests

The SEC is accepting comments on its 2014-2018 Draft Strategic Plan by email, PerformancePlanning@sec.gov, through by March 10, 2014.