This week, the SEC noted that information posted to a company’s website or blog should be recognized as adequate disclosure to meet Reg FD requirements. This is not only good news for IR professionals, but for the practice of investor communications too. As stated in this transcript from the IR Web Report:
“Indeed, one of the key benefits of the Internet is that companies can make information available to investors quickly and in a cost-effective manner. The use of electronic media is arguably superior to providing company information the old way. It’s a better way to provide information to most investors since today it can be presented in interactive format that allows each individual to click through or drill down to the level of detail that’s appropriate to him or her.”
-SEC Chairman Christoper Cox
The guidance outlined in the SEC meeting benefits corporations since it reduces the cost of disclosure, will improve the ability to communicate with investors and clears up some previous confusion on Internet usage in investor communications. Additionally, they addressed the issues of liability on external links and the nature of presenting information in an online format – information can be formatted for the screen and not for paper. All of this is important since it acknowledges the benefits of the web (hyperlinks, etc.) and will allow for companies to use more interactive elements to present information in a dynamic way.
It’s also very interesting that the SEC itself is now using Twitter to distribute its releases too.
