The U.S. Securities and Exchange Commission's Interpretive Release on the Use of Electronic Media – its most recent Internet release – took effect on May 4, 2000. Although the Release does not break significant new ground, and in this respect was disappointing to many people involved with the securities industry, it does provide some additional guidance on the use of electronic media by operating companies, investment companies, municipal securities issuers (which is not discussed in this article) and market intermediaries.
The Release has five main components, the first three of which are discussed in this article. First, the SEC updated its previous guidance on using electronic media to deliver documents. Second, the Release addresses an issuer's liability for web site content. Third, the Release outlines selected principles that issuers and market intermediaries should consider when conducting online offerings. In addition, the Release seeks comment on a number of online issues
