From: John McBride
Pink Sheets has proposed that the SEC adopt a new rule that provides for full disclosure of the identity, compensation and relationships of all participants (i.e., issuers, sponsors, third party promoters, etc.) directly or indirectly engaged in the promotion of stocks in the over-the-counter (OTC) market and that targets the explosion of misleading spam email and fax promotions on OTC stocks and provides for increased transparency and effective disclosure to protect investors from "pump and dump" promotion schemes.
"We believe that putting these straightforward requirements in place will enable investors to easily identify fraudulent stock promotions and unveil the miscreants who engineer them. Any company that does not have current information available has no business promoting its securities, since investors cannot make reasonable investment decisions in an information vacuum. By cutting off the ability of promoters, sponsors and affiliated parties to dump these stocks into the market, the rule will render fraudulent promotions unprofitable and set the stage for legitimate small company issuers to deliver information to the marketplace," said Cromwell Coulson, President and CEO of Pink Sheets, LLC.