Regulation FD in operation. (Investment Planning)

Practical Accountant, The, February, 2002

SEC Commissioner Laura S. Unger has issued a report, "Regulation Fair Disclosure Revisited." The report analyzes the operation of Regulation FD (Fair Disclosure), including comments made at a SEC roundtable on the regulation's operations.

The SEC adopted Regulation FD on August 10, 2000. It is aimed at curbing the selective disclosure of material nonpublic information by issuers to analysts and institutional investors. It requires that when an issuer discloses material information, it does so publicly.

There are a number of recommendations in the report. One is that the SEC should provide more guidance on what constitutes materiality. A recommendation is also made that the SEC make it easier for issuers to use technology to satisfy regulation FD, noting the...