Regulation Fair Disclosure

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Regulation Fair Disclosure

An SEC regulation requiring that all publicly-traded companies in the United States disclose relevant, or "material," information to all shareholders at the same time. Adopted in 2000, this was a response to a common practice in the 1990s in which large companies disclosed financial information on conference calls to certain analysts and neither the public at large nor even all shareholders were invited. The regulation mandates that intentional disclosures be made publicly and unintentional disclosures be made public within 24 hours. Controversial when introduced, it has increased access to information on larger firms, but some analysts suggest that it has decreased the information available, and therefore increased stock volatility for smaller firms.
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Guidance reduces earnings volatility and allows the Company to more freely discuss industry trends and expectations in line with Reg FD.
Investment professionals are in the middle of a perfect storm with growing competition driving the search for a differentiated research process, Reg FD shutting down privileged information channels, and analyst coverage changing significantly" said Ms.
88 percent said Reg FD should be continued; 10 percent said it should be repealed.
Reg FD enforcement actions, recent '33 Act Reforms and WKSI offerings, offer challenges, to name a few.
Remember that Reg FD and other disclosure laws remain in effect, and be wary of selective disclosure to key analysts.
Reg FD was enacted into law several years ago to prevent well-connected persons from gaining valuable inside information that is "actionable".
An integral part of a public company's corporate structure, investor relations professionals have become even more critical in the wake of Reg FD, Sarbanes-Oxley and other recent SEC reforms.
Eighty-seven percent (87%) of the respondents say that Sarbanes-Oxley related requirements are "too costly," and 60% feel that the Securities and Exchange Commission's Reg FD, involving fair disclosure, actually blocks the flow of information to investors.
Regulation Fair Disclosure, known as Reg FD, was enacted late last year by the SEC.
His impartial and equitable treatment of individual and institutional investors preceded Reg FD by 40 years.
Thompson, president and CEO of The National Investor Relations Institute (NIRI), will speak on "Walking the Reg FD Tightrope" Tuesday, November 9 at 5:30 p.