U.S. Securities and Exchange Commission commissioner Laura Unger is recommending changes to Regulation FD, the SEC’s initiative to end selective disclosure by corporate issuers.
Unger, who voted against Reg FD before it was implemented by the SEC in October 2000, today issued a report examining its impact on the marketplace.
Unger’s report makes three key recommendations:
- that the SEC should tell companies more definitively what information has to be made public;
- that the commission should incentivize companies to provide more information by allowing greater use of technology to satisfy Reg FD’s public information dissemination requirements; and
- that the SEC should closely examine post-Reg FD market information and filings to better determine the regulation’s impact on the depth and quality of company information in the marketplace.
“At the meeting adopting Regulation FD, the commissioners promised to monitor the regulation’s impact on information flow. I am gratified to make good on that promise today by issuing this report. Rather than revisit the merits of Regulation FD, the report studies the SEC Roundtable transcript and public surveys and makes constructive suggestions to the commission about how to refine the regulation to increase marketplace information.”