SEC Commissioner Laura S. Unger Releases Report, Recommends Improvements to Regulation FD
FOR IMMEDIATE RELEASE
Washington, DC, December 6, 2001 Commissioner Laura S. Unger of the U.S. Securities and Exchange Commission today issued a report examining the impact of Regulation Fair Disclosure on the marketplace. In effect since October 2000, the Commission adopted Regulation FD to end issuers selectively disclosing important or "material" company information to analysts. Reviewing Regulation FD's first year, the report, "Regulation FD Revisited," makes certain findings and recommendations based on an April SEC Roundtable and industry surveys.
Commissioner Unger's report makes three key recommendations. First, the report recommends that the SEC should tell companies more definitively what information has to be made public under Regulation FD by providing additional guidance on materiality. Second, the report recommends that the Commission should incentivize companies to provide more information by allowing greater use of technology to satisfy Regulation FD's public information dissemination requirements. Third, the report recommends the Commission should closely examine post-Regulation FD market information and filings to better determine the regulation's impact on the depth and quality of company information in the marketplace.
"At the meeting adopting Regulation FD, the Commissioners promised to monitor the regulation's impact on information flow. I am gratified to make good on that promise today by issuing this report. Rather than revisit the merits of Regulation FD, the report studies the SEC Roundtable transcript and public surveys and makes constructive suggestions to the Commission about how to refine the regulation to increase marketplace information," said Commissioner Unger.
The report also releases a transcript of the SEC's roundtable discussion. Participants included SEC Commissioner Isaac C. Hunt, Jr., issuers, analysts, investors and information disseminators.
The report is available on the Commission's website at www.sec.gov/news/studies/regfdstudy.htm.