Regulation FD: Fair Disclosure

Updated 2/20/2024

Financial analysts do their best to learn about the companies they report on. This often involves meeting with CEOs and directors. Sometimes these CEOs or directors accidentally disclose material, nonpublic information. Regulation FD is designed to keep the playing field level when these mistakes occur.

Regulation FD prohibits companies (and those acting on their behalf) from selectively disclosing material, nonpublic information to financial analysts, brokers and others in the financial industry. If they intentionally do so, the information must be simultaneously disclosed to the public. If the manterial nonpublic information is inadvertently disclosed, the company must publicly disclose the information within 24 hours.

The link below offers further details and is provided solely as an optional supplement.

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