SEC Offers Reg FD Suggestions

December 6, 2001 ( - The US Securities and Exchange Commission (SEC) issued a report that examines the impact of Regulation FD on the market, and recommends ways to improve the regulation.

Regulation FD, or the fair disclosure rule, which was introduced in October 2000, requires public companies to disclose all material information to the general public at the same time as analysts and other selected parties.


Proponents of the rule argued for its implementation, saying that it would provide the ordinary investor with the same access to corporate information as financial analysts.

But opponents, including then-SEC Commissioner Laura Unger – the only member of the SEC who voted against the rule’s introduction – countered that the rule would lead corporations to become more guarded about the information they released.

Suggested Fixes

The report, Regulation FD Revisited , makes the following recommendations based on a SEC Roundtable and industry surveys. The SEC should:

  • tell companies more definitively what information has to   be made public under Regulation FD by providing additional guidance  on materiality,
  • give companies an incentive to provide  more  information by allowing  greater  use  of technology  to  satisfy Regulation FD’s  public  information dissemination  requirements, and
  • examine  post-Regulation  FD market  information  and  filings to  better  determine  the regulation’s  impact  on the depth and  quality  of  company information in the marketplace

The report includes a transcript of the SEC’s roundtable discussion. Participants included SEC Commissioner Isaac Hunt, issuers, analysts, investors and information disseminators.

– Camilla Klein                     

Read more at Financial Pros Find Less Information in More Disclosure

Read more at Fair Disclosure Carries Huge Price Tag

Read more at Regulation FD Still Needs Material Guidelines