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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Cheeky Kid who wrote (61847)	11/1/2000 4:36:44 PM
From: StockDung	Respond to of 122087

US SEC seeks to calm fears on new disclosure rules By John Poirier WASHINGTON (Reuters) - The top enforcement official at the Securities and Exchange Commission on Wednesday sought to allay fears over new rules on disclosing company information to analysts and investors but vowed to stay vigilant against violators. "I hope to convince you today there is no need for fear or hysteria," Richard Walker, director of SEC's division of enforcement, said in prepared remarks to be delivered at a Securities Industry Association SIA meeting in New York. The remarks follow implementation on Oct. 23 of a new set of rules known as Regulation FD Fair Disclosure, which bars firms from giving key information to big-time Wall Street analysts and investors before the rest of the public. The SIA, Wall Street's lobby group, has said the regulation would cause a "chilling effect" on communication between companies and their investors and analysts. "Regulation FD was not intended to be revolutionary, though it was clearly drafted to change behavior and to end practices that were universally regarded as unfair," Walker said. "NO FD SWAT TEAMS" Walker said the rules were not designed to trap company officials or analysts but he made clear that securities regulators are watching out for "egregious violations involving the intentional or reckless disclosure." "There will be no FD Swat teams, and I do not envision any FD sweeps," Walker said. "At the same time, however, you should understand that the Enforcement Division is not a toothless tiger." Attempting to calm an alarmed Wall Street, he said violations of the rules will not fall under fraud provisions nor will there be exposure to private liability. He said the SEC will not accept round-about maneuvers by company officials who speak in code or gesture with a wink or a nod. "We'll be on the lookout for situations involving multiple violations that an issuer claims were non-intentional," he said. "No violation will occur if the speaker did not act knowingly or recklessly." ANALYSTS CAUTIONED AGAINST PRESSURING FIRMS While FD focuses on how and which type of information is passed on from companies to analysts and traders, analysts may also be at risk of violating the new rules. Walker cautioned analysts against coercing company officials by threatening to take actions that would hurt the company's stock price if officials refuse to give non-public information. By doing so, an official would violate FD practices and the analyst could be causing or abetting the official's violation. "It is okay to be persistent and dogged; it is not okay to be abusive and threatening," he said. 15:57 11-01-00