Fair Disclosure

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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.

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 while excluding the public and even all shareholders. The regulation mandates that intentional disclosures be made publicly and that unintentional disclosures be made public within twenty-four 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.
References in periodicals archive ?
In wake of the Regulation Fair Disclosure, which has reduced the amount of information provided by companies to Wall Street, analysts, more than ever before, need to do a lot of leg work and read between the lines.
securities and Ex change Commission's enactment of Regulation Fair Disclosure continue to receive mixed reviews.
Senior financial executives -- namely, CFOs, finance directors and controllers -- have a special duty to stakeholders to protect the company's assets and provide full and fair disclosure to investors.
If there were a [legitimate] market, it would be reached by full and fair disclosure of the redundancy by converting insurance charges from basis points into dollars and by truthful labeling of sales loads.
To continue to win the war of the expectation gap, auditors need to speak up -- not just when things are wrong but also when things are not quite right to pose difficult questions about the quality of reporting and to seek full and fair disclosure," said Sutton.
Enacted by the Securities and Exchange Commission just over a year ago, Regulation Fair Disclosure, known as "Reg FD," seems to be accomplishing its promise for fair and equal disclosure of companies' financial information by requiring public companies to disclose all material information to the general public at the same time as to analysts and other selected parties.
Regulation Fair Disclosure, known as Reg FD, was enacted late last year by the SEC.
Humphries discussed the increasing importance of investor relations (IR), driven by growing needs of individual investors, the international community and requirements of Regulation Fair Disclosure (Reg FD).

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