The SEC Approves Limits on Selective Disclosure

n a very important development for public companies, the Securities and Exchange Commission recently adopted new Regulation FD (Fair Disclosure). Directed at what the SEC believes is the practice of selective disclosure of material information, Regulation FD likely will affect fundamentally the way many companies manage relationships with securities analysts and stockholders. The new regulation becomes effective on October 23, 2000. The following discussion highlights key provisions of the new regulation and discusses some of its practical implications.