Regulation FD


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Regulation FD (fair disclosure)

U.S. S.E.C. regulation whose purpose is to ensure that select groups of investors are not privy to firm-specific information before other investors. Executives are not allowed to reveal nonpublic information during their communications with analysts and select shareholders. If information is inadvertently released, they must take steps to broaden the dissemination of the information within 24 hours of discovering the disclosure.

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.

Regulation FD

An SEC regulation that mandates a company must release material information to all investors simultaneously. Material information released inadvertently must be made publicly available within 24 hours. Some critics contend Regulation FD causes increased volatility in stock prices.
References in periodicals archive ?
Regulation FD and Section 13(a) are designed to protect investors by requiring registrants to disclose to the general public any material, nonpublic information that is provided to certain securities professionals or shareholders if it is reasonably foreseeable that they will trade on such information.
Although the Securities and Exchange Commission enacted Regulation FD with the aim of improving the quality of information reaching the market to help level the playing field between investors and analysts, it may have the opposite effect according to a new study.
No one knew how stringently the SEC would apply regulation FD, which requires public companies to share earnings data and related information equally with all interested parties.
Regulation FD, covers all corporate communication, it's about time companies started consolidating IR and PR, according to National Investor Relations Institute President Lou Thompson.
The two companies said they will develop a suite of services to help corporations in dealing with the investor and analyst communities, including investor relations site hosting services, webcasting, contact management, and distribution of financial information to meet disclosure and Regulation FD guidelines.
We actually give more guidance now than before Regulation FD," said Laura Gagnon, vice president of financial and investor relations.
On October 23, 2000, Regulation FD went into effect.
Regulation FD has forced many Utah public companies to reexamine and restructure their dealings with financial industry professionals.
To ensure that this selective disclosure does not occur, the SEC has now issued Regulation FD (for Fair Disclosure).
To address what it saw as unfair information distribution practices, the SEC's rule on financial disclosure, Regulation FD, went into effect Oct.
Divided into three main parts, it includes an explanation of the new rules, the scope of regulation, materiality, intentional and non-intentional disclosure, full text of Regulation FD and Insider Trading Rules, the SEC 's adopting release in its entirety and the full text of the relevant rules.
Issuers and other parties should note that until the SEC eliminates or amends the exemption through rulemaking, which is expected in the next 90 days, the exemption provided to credit rating agencies from Regulation FD remains in full force and effect.

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