(September 26 – 12:20 ET) – The Securities Industry Association has written to the Securities and Exchange Commission asking it to delay the implementation of the new fair disclosure rule until year end.
The SIA’s request joins one made by the National Investor Relations Institute, which asked the SEC to extend the effective date of Regulation FD until December 29. The rule requires public companies to treat ordinary investors exactly as they do analysts and other Wall street insiders when it comes to disclosing material information. The rule is currently scheduled to take effect October 23.
The securities industry has generally resisted the new rule as being onerous and possibly backfiring by causing companies to clam up with analysts. Nevertheless, the SEC remains convinced that the rule will promote fair disclosure, and is pressing ahead.
-IE Staff