XBRL for Mutual Funds: When the requirement hits will I be ready?

To date our blog series on XBRL for Mutual Funds has covered the background of the XBRL mandate requiring all open-end mutual funds to file the Risk/Return Summary section in XBRL format as an exhibit, as well as publishing the XBRL files to the fund’s website when one exists. Additionally, we have also presented a solution created by industry experts to allow for funds to have a smooth transition. 

The third function of this blog series is to address FAQs. At Merrill Corporation, because of our expertise on the subject, we have been working with our clients on both a broad overview and specifics as it relates to XBRL. To assist others that may have similar inquiries, here are responses to a few of the questions we have been asked: 

Q: What does this all mean to me?  
A: All open-end mutual funds will need to file interactive tagged data (XBRL) of their Risk/Return Summary section during the Prospectus’ annual update or any time a change is made through the year that impacts the Risk/Return Summary. 

Q: When do I “go live”?  
A: Based on the fund’s fiscal year end, the requirement could impact you as early as late-January/mid-February 2011. The September 30th funds will be the first impacted. 

Q: When do I need to start preparing?  
A: As of today, there are 101 total days remaining until this ruling goes into effect. Weekends, the upcoming holidays and vacation schedules push that number even lower. Most fund complexes want to have their funds on-boarded at least 30-45 days in advance of the associated EDGAR filings. For those companies who have funds that will file/publish XBRL in January and/or February, they will want to be “ready” by the end of the fall. 

Q: What will I need to do? 
A: Now is the time to review and select an appropriate vendorto manage the tagging, filing and publishing of your funds. Fund complexes holding approximately 18% of the funds on the market have already selected a vendor and are in the process of on-boarding their funds today. On-boarding your funds in advance will not only ensure that your technology is ready to go, but it is also a great opportunity for your teams to learn and put into practice their roles and responsibilities with the process. The end goal should be “no surprises.” 

Our information and ability to answer these questions comes from our research and development of Merrill XBRL Complete, a robust, end-to-end service offering that produces accurate and reliable tagged through a cost effective and efficient process. Additionally, the Merrill Compliance Services Team has the ability to navigate the compliance waters, guiding those in need through the discovery process, on-boarding/implementation, “going live” and periodic updates.  

Our overall message is that the time to prepare is now. Don’t be caught off guard. Understand your tagging and publishing needs well in advance to make the proper business decision. Being prepared is the key to a successful transition to XBRL.

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Merrill Corporation is proud to offer XBRL Complete, a suite of services that meets - and has options to exceed – the mandated requirements for XBRL for mutual funds.

For more information, please click here or call 866-367-9110.