What does '21st Century Disclosure' Look Like?

Last week's SEC announcement regarding a "21st Century Disclosure" initiative reads more like a novel than a legal document. And that's exactly how SEC Chairman Christopher Cox wants it to sound. Cox, who intends to step down once a new president takes office, continues to work hard on using new technology to help make the financial reporting process easier to understand.

The SEC's June 24th announcement contains a rich vein of interesting language: "disclosure system," "sunlight remains the best disinfectant for problems in our capital markets," "post-EDGAR architecture," and, of course, "21st Century Disclosure."

Cox has appointed an English professor (!), William Lutz of Rutgers University, to oversee an exhaustive review of all existing forms of SEC forms and reporting requirements. The review will serve as the foundation for a future advisory committee that will analyze the findings and make recommendations.

Lutz played a key role in the SEC's push for plain-English financial reporting in the mid- to late-1990s, and he is described as possessing "dual expertise as a securities lawyer and plain-English expert focused on transparency" (wouldn't it be great if more lawyers doubled as plain English specialists?) in this release.