• About
  • Contacts
IR Web Report
  • Latest Posts
  • Categories
    • Web Disclosure
    • Annual Reports
    • Quarterly Reporting
    • Presentations
    • Social Media
    • IR Law
    • Governance
    • Shareholder Services
    • Video
    • Mobile
Browse: Home / SEC assessing blogs for disclosure, says Cox


SEC assessing blogs for disclosure, says Cox

By Dominic Jones on January 10, 2007

  • Tweet

By Dominic Jones

THE U.S. Securities and Exchange Commission (SEC) is continuing to weigh whether to allow companies to use website and blog postings instead of news releases for investor disclosure.

Chairman Christopher Cox told a Reuters Regulation Summit in Washington that the dissemination requirements for Regulation Fair Disclosure (Reg. FD) that were passed more than six years ago have been overtaken by technology.

christopher cox, sec chairman
SEC Chairman Christopher Cox…”accommodation for how world actually works”

He said: “When Reg. FD went into place, some of the commissioners at the time raised this question. Of course, the use of the Internet is now much more widespread. Indeed, the way that press releases are now distributed is by the Internet.

“We’re going to continue to look at this issue and see whether or not some accommodation cannot be made for how the world actually works.” (listen to audio from Reuters)

Issue raised by Sun’s CEO

The question of companies being allowed to use adequately noticed website and blog postings was raised by Sun Microsystems CEO Jonathan Schwartz in a letter to Cox last October.

Schwartz, who is the only Fortune 500 CEO who blogs, asked the commission to consider changing the requirement that companies use SEC filings, news releases and open conference calls to distribute information. Reg. FD is designed to ensure that all investors have equal access to important information.

Chairman Cox responded in November by posting his reply on Schwartz’s blog, a move that drew widespread media and blog reaction. The chairman of the world’s most powerful securities regulator said the SEC supported the use of the Internet to inform investors and welcomed Schwartz’s offer to discuss the issue further.

Opposition from big news release services

News release services such as PR Newswire and Business Wire, which earn substantial revenues off the back of SEC and exchange rules, have been critical of the concept of adequately noticed website postings for disclosure.

Here at IR Web Report, we support the idea of websites and RSS being used for disclosure. If nothing else, the SEC should start a pilot program, possibly tied to its XBRL pilot, to test the effectiveness of website postings of scheduled disclosures such as quarterly earnings announcements.

The time and date of these disclosures could be announced and the actual releases distributed to interested investors via email and RSS, as well as posted on companies’ websites.

Cox reads blogs

Speaking at the Reuters event on Monday, Chairman Cox also revealed that he reads blogs to gauge public reaction to the SEC’s activities and rule making.

“Blogs are a great way to infer passion and depth of feeling,” he said. “They give you an early read on the … response you might expect.”

However, he said blogs were informal and “so irreverent” that he did not rely on them to steer formal SEC business.

Hmm, wonder who he was thinking about when he said that? Better irreverent than irrelevant, I guess.


Dominic Jones

Dominic Jones (bio) created IR Web Report in 2001. He is a consultant to leading public companies and investor relations service providers worldwide. You can contact him via the contacts page.

Posted in Articles, Disclosure | Tagged blogs, conference calls, earnings, Jonathan Schwartz, news releases, pr newswire, reuters, rss, SEC, SEC filings, securities, sun microsystems, technology, U.S. Securities and Exchange Commission, XBRL

« Previous Next »

Search the Site

Latest Stories

  • Survey finds social media gap between investors, companies
  • SEC’s social media guidance has devil in details
  • Crisis investor relations in the age of social media
  • Private meetings undermine fair disclosure, study finds
  • What makes a good annual report?
  • CEO pushes Reg FD limits on Twitter
  • For IROs, XBRL errors a wake-up call

Get Our Free Email Newsletter

Close
Note: We don't sell or rent our email list. Unsubscribe instructions come with each email.

Full Disclosure

All articles on IR Web Report are unpaid editorial. We do not charge a fee to outside contributors. Sponsors or advertisers are not automatically entitled to become contributors or receive editorial coverage. We accept contributors based on their individual expertise and experience. Contributors are required to disclose when they write about or refer to any company with which they have a business relationship, either directly or indirectly. If you believe that any contributor or IR Web Report is not living up this policy, please contact us or leave a comment on the relevant post. Editorial integrity is important to us and we take all complaints seriously.

Site Map

  • Home
  • Terms of Use
  • IR News
  • About
  • Contacts

Archives

  • 2013
  • 2011
  • 2010
  • 2009
  • 2008
  • 2007
  • 2006
  • 2005
  • 2004
  • 2003
  • 2002
  • 2001

About IR Web Report

Founded in 2001, we are the world's leading source of information about online investor relations communications. Our core philosophy is that investors' needs must come first or companies' online communications efforts will fail to be effective. More about us

Follow @irwebreport
Feed Subscribe to feed

Copyright © 2001 - 2018 IR Web Reporting International Inc. By using this site you agree to the Terms of Use and our Privacy & Cookie Use Policy.