Reg FD: failed directive? Nearly 5 years into new disclosure rule, some say communication has gotten worse.(Focus: Public Companies)(Regulation Fair Disclosure)

Crain's Chicago Business, May, 2005 by LEVINE, DANIEL ROME

Byline: DANIEL ROME LEVINE Public companies, Wall Street analysts and institutional investors howled in protest when Regulation Fair Disclosure, known as Reg FD, took effect in October 2000. The rule, designed to level the informational playing field for individual investors, requires companies to disseminate information to the public-such as by news release, government filing or conference call-at the same time analysts get it.

But five years later, some Chicago companies say Reg FD hasn't done much to improve their communication with individual investors. That's because rather than sharing information with Wall Street and the public equally, companies are simply sharing less information with everyone. "Everybody now has the same information, but the...

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