Fair disclosure: How to protect your company against Reg FD liability

Description

Abstract: In 2000, the SEC adopted Regulation FD (fair disclosure — “Reg FD”), which prohibits public companies from selectively disclosing material nonpublic information to analysts, investors and others. To ensure compliance with Reg FD and to protect themselves against significant monetary penalties, companies need to develop a comprehensive disclosure policy. This article explains when Reg FD does and doesn’t apply, acceptable methods of making information public, and developing a written policy. A sidebar offers a list of information and events that are likely to be considered material and that companies should review carefully.