SEC's New Rule Prohibiting "Selective Disclosure"
WASHINGTON, DC — Information on compliance with the new SEC rule prohibiting "selective disclosure" is available from the international law firm of McDermott Will & Emery. For example, recently, partners Eugene Goldman and David Cifrino provided such information to in-house counsel and other representatives of International Mass Retailers Association (IMRA) members. For a detailed version of the summary of the conference call with the IMRA, please view the following October 16, 2000 IMRA Memorandum: Summary of October 10 Regulation FD Conference Call
"McDermott has counseled various clients on the scope of Regulation FD, future compliance and SEC rules and regulations," commented Mr. Goldman. "Understanding and complying with these regulations is very important for all public companies."
The SEC rule, which went into effect on October 23, prohibits "selective disclosure" of "material information" to analysts or others who might trade on the information. With this rule in effect, any intentional disclosure of material information must be made to the general public at the same time as the disclosure. Mr. Cifrino also noted that although most well advised companies already comply with these new principles, they must now no longer selectively provide or reaffirm guidance regarding earnings.
