Regulation FD: An Alternative Approach to Addressing Information Asymmetry

RESEARCH HANDBOOK ON INSIDER TRADING, Stephen Bainbridge, ed., Elgar, 2013

U of Penn, Inst for Law & Econ Research Paper No. 12-19

26 Pages Posted: 20 Apr 2012 Last revised: 3 Mar 2015

See all articles by Jill E. Fisch

Jill E. Fisch

University of Pennsylvania Carey Law School; European Corporate Governance Institute (ECGI)

Date Written: 2013

Abstract

This chapter traces the development of the SEC’s use of Regulation Fair Disclosure (FD) to address information asymmetry in the securities markets. The chapter describes the SEC’s developing enforcement policy and notes, in particular, the SEC’s efforts, through its selection and settlement of Regulation FD cases, to provide guidance to corporations and corporate officials about areas of key concern. The chapter concludes by highlighting current areas of particular importance, including disclosure of information through private meetings and the implications of technological innovations such as the internet and social media. The chapter is forthcoming in Research Handbook on Insider Trading (Stephen Bainbridge, editor).

Keywords: Securities law and regulation, insider trading, Regulation Fair Disclosure, Regulation FD, Reg FD, Chiarella, Dirks, information asymmetry, federal securities fraud, materiality, selective disclosure practices, Siebel Systems, Office Depot, information flow and quality, technology, social computing

JEL Classification: K22

Suggested Citation

Fisch, Jill E., Regulation FD: An Alternative Approach to Addressing Information Asymmetry (2013). RESEARCH HANDBOOK ON INSIDER TRADING, Stephen Bainbridge, ed., Elgar, 2013, U of Penn, Inst for Law & Econ Research Paper No. 12-19, Available at SSRN: https://ssrn.com/abstract=2042696

Jill E. Fisch (Contact Author)

University of Pennsylvania Carey Law School ( email )

3501 Sansom Street
Philadelphia, PA 19104
United States
215-746-3454 (Phone)
215-573-2025 (Fax)

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
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1000 Brussels
Belgium

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