SEC Adopts New Selective Disclosure Rule

SEC Adopts New Selective Disclosure Rule

Last month, after much comment and some controversy, a divided Securities and Exchange Commission adopted Regulation FD. The new regulation restricts the selective disclosure of material nonpublic information to specified types of securities market professionals and stockholders.

Regulation FD takes effect on October 23, 2000 and will apply to almost all public companies. Regulation FD represents the SEC's first attempt at direct regulation of informal communications between public companies and investment professionals. Public companies will need to review, and possibly adjust, their investor relations practices in light of the new regulation.

Hale and Dorr has just published a Corporate Advisor containing:
  • a summary of new Regulation FD;
  • practical guidance for living with Regulation FD;
  • a litigator's perspective on Regulation FD; and
  • a summary of two new insider trading rules that were concurrently adopted.

Please click here to read the Corporate Advisor. If you have any questions about Regulation FD, you may contact:

Patrick Rondeau
David Westenberg
Jonathan Wolfman
Jeffrey B. Rudman
© 2000 Hale and Dorr LLP. All rights reserved.

This alert is provided with the understanding that it does not constitute the rendering of legal, tax or other professional advice or services by Hale and Dorr LLP or its attorneys.