US moves to stop analysts getting company information ahead of public
The US Securities and Exchange Commission will today conduct an open meeting to consider a rule proposal that would ban selective disclosure of corporate information.
Selective disclosure takes place when company officials disclose material information to certain groups of individuals, typically industry analysts, prior to making the information available to the public.
And the SEC, in a move that could have serious implications for the UK, will try to force companies to give investors information at the same time as stock analysts get them.
This is part of a three-pronged attack to amend the current rules that will also include changes designed to improve disclosure relating to company audit committees to enhance the reliability of financial statements of public companies.
Other moves will consider whether insider trading liability requires the ‘use’ or ‘knowing possession’ of significant non-public information and a there will also be a review of procedures that apply when a family or other non-business relationship gives rise to the liability of insider trading.