Securities Advisory: Regulation FD: A One-Year Retrospective Analysis
9/1/2001
This advisory summarizes the Regulation FD ("Fair Disclosure"), which was adopted by the Securities and Exchange Committee in October 2000 to prevent companies from disclosing material, nonpublic information to selected members of the financial community before or without disseminating it to the public. Regulation FD requires public companies to disclose all material information, including profit warnings and earning forecasts, to the public prior to or simultaneously with the disclosure of such information in a nonpublic forum. The advisory outlines the regulation's impact on the quantity and quality of corporate disclosure, the relationship between issuer companies and the analyst community and the financial markets.
