Schwartz fights for Reg FD changes - Sun's Schwartz, that is
In his blog post today, Sun CEO Jonathan Schwartz makes a compelling case for why the SEC should re-visit Regulation Fair Disclosure (Reg FD). He even includes a recent letter he sent to SEC Chairman Christopher Cox. The Securities and Exchange Commission (SEC) implemented Reg FD six years ago. It was "designed to promote the full and fair disclosure of information" by public companies. Organizations can use a number of ways to comply with Reg FD - e.g. a press release, a Form-8K filing, a story that appears over a major new wire or publication such as the Wall Street Journal - but not the company website. In Section 4b of its 2000 ruling, the SEC stated that "an issuer's posting of new information on its website would not by itself be considered a sufficient method of public disclosure." But it also recognized the possibility that these rules would someday need to be amended, "As technology evolves and more investors use the Internet." Well, we've come along away in the past six years. As Schwartz suggests, it is time for the SEC to take another look at what constitutes "full and fair disclosure."
Posted by John Moran on October 3, 2006 at 2:10 PM
