New Regulation FD

05 Apr

In recent days (April 2 to be exact), the U.S. Securities and Exchange Commission (“S.E.C.“) issued a report that said that Regulation FD could be satisfied by issuers by posting disclosure to social media sites.  To us, this is a logical extension of the J.O.B.S. Act since its intention was to allow small companies to capitalize themselves through the larger reach of the Internet. The S.E.C. release, available at, provides more insight.

Regulation FD is very important for publicly traded companies – it basically states that all investors should receive good and proper information disclosure from publicly traded companies at the same time.  Only certain venues were considered proper outlets to post “Press Releases” and even information on the company’s website was limited and specified.  Nothing worse than getting a comment from the S.E.C. on a registration statement relating to improper disclosure on the company’s own website – news sections posting information news before the official press release or 8K, company newsletters that disclose something improperly, etc.  Here is the S.E.C.’s definition of Regulation FD (

Here are some simple rules that we train our client organizations to follow:

  1. Create an “Investors” section of their website.  Link to other public venues for quotes, etc. such as Yahoo! Finance, Google Finance, Market Watch, OTC Markets.
    1. List board members, including committees.
    2. List transfer agent.
    3. List company’s SEC counsel.
    4. List company’s Ethics Statement.
  2. Create a “News” section of website wherein only items that have been released officially through a Regulation FD authorized distributor, such as Market Wire, Mac Report, Business Wire, etc..
  3. Create a “BLOG” section of website for opinions.
  4. Always release information as follows:
    1. Issue 8K, if required.
    2. Issue press release through FD authorized distributor.
    3. Put exact copy of press release on company’s website.
    4. Put exact copy or link to press release on LinkedIn and Facebook company pages.

      Image representing LinkedIn as depicted in Cru...

      Image via CrunchBase

Disclosure is a “by the numbers” issue, meaning every company should come

Image representing Yahoo! Finance as depicted ...

Image via CrunchBase

up with a standard operating procedure (“SOP”) and follow it religiously – more to ensure that news gets the largest reach but also to ensure that a company doesn’t go afoul of the authorities.


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