Occasionally, I am asked if there is a way to get EDGAR codes for new insiders expedited. Unfortunately, the SEC is notoriously unsympathetic to rush requests. Their usual response is that it takes three to four days for EDGAR codes to be issued and, thus, the codes should be requested three to four days before the insider’s first filing is due.
In practice, however, this isn’t always possible, especially if the new insider has been granted a new award on the date he/she is hired/promoted to a Section 16 role or elected to the board. In this case, the insider’s first Form 4 will be due in just two business days. The SEC’s position is that you should request the codes before the individual becomes subject to Section 16, but this isn’t always possible. I agree that this is crazy annoying because the SEC has essentially created a system that does not work for their clients and blames the clients for it not working. t is what it is.
Here are a few suggestions for getting codes quickly:
Of course, before resorting to the above measures, make sure the insider doesn’t already have codes. If new insiders have been insiders at prior employers or serve on the boards of other public companies, they likely already have EDGAR codes. An individual’s EDGAR codes are for life; the individual should use the same codes at all of the companies where he/she is an insider. Asking for new codes for an insider who already has codes is likely to delay the process. You can use the Company Search function (insiders are considered “companies” for purposes of EDGAR) in the Online Forms Management system to verify that a new insider doesn’t already have EDGAR Codes.
Thanks to Linda Epstein of Hewlett Packard Enterprise for many of the tips in today’s blog entry.