2 responses to “Question: Does Early Access to PR Wire Info Implicate Reg FD?”

  1. Isn’t the IR Web scenario exclusionary?

  2. I’m not a securities lawyer, but I do understand fair and unfair. I can’t believe that the SEC would consider it simultaneous and non-exclusionary for some investors to get market moving information one to four minutes ahead of others.

    But more important to me is that issuers and organizations like the National Investor Relations Institute, representing thousands of companies, now know about this issue (they most probably did not know before) and have it in their power to easily fix the problem, but have so far chosen to say nothing. This can only lead people to wonder what benefit there is to management to have this uneven playing field persist.

    While I think people in the investor relations industry should question the very close relationship that has developed between the profession’s institutions and the PR wire services, I don’t think this is an issue they can blame on the PR wires. The PR wires cannot easily fix the problem of uneven access because it is beyond their control.

    All investors simply need to know is that if they really want company earnings news the second it becomes available to others via a PR wire, they just need to go to a company’s website. However, if they do that now, they commonly will be among the last to know.