Reg FD might get dynamic in future

NEW YORK: Rumors of change in SEC disclosure rules may be correct,

but not the outright demise of Reg FD postulated in some circles.



In a recent speech, SEC chairman Harvey Pitt said disclosure every

quarter implies information is static, not dynamic. He said the system

should be reconsidered in light of internet-available instantaneous

communication, which could allow companies to supplement periodic

disclosure with Pitt's new concept of continuous disclosure.



"In that type of system," Pitt explained, "public companies might be

required ... to disclose unquestionably material information when it

arises and becomes available, even if the information is learned before

the next-scheduled periodic report is due to be filed."



Business Week called Pitt's suggestions "potentially the biggest

shake-up in securities regulation since the SEC's birth in the depths of

the Depression."



The SEC would not comment to PRWeek on the potential impact to investor

relations if the changes are instituted. Lou Thompson, president and CEO

of the National Investor Relations Institute said the concept opens a

whole range of disclosure possibilities.



"Continuous disclosure would potentially increase the level of

disclosure, which means an enhanced role for IR," said Thompson.



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