Wall Street's financial analysts may no longer be privy to corporate secrets. Then again maybe they will be if they agree not to tell anyone. On October 23, 2000, Regulation FD (Fair Disclosure) went into effect. It is designed by the Securities and Exchange Commission (the SEC) to address the selective disclosure of material nonpublic information by public companies. The major implication for such companies and their executive officers is that now they will need to design a communications policy to comply with this new regulation. The regulation requires simultaneous public disclosure of intentional selective disclosures and prompt public disclosure for unintentional disclosures. This article addresses the background of the regulation, its mechanics, and finally some considerations for designing such a communications policy.
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