When Regulation FD was adopted in August 2000, the Securities and Exchange ("SEC") Commissioners agreed to study the Regulation's effect on the marketplace. On December 6, 2001, SEC Commissioner Laura Unger issued a report examining the impact of the Regulation (see the "Report" on the SEC website). The Report makes three recommendations:
What is the significance of this Report and its recommendations? No changes to Regulation FD have been formally proposed. The author of the Report, Commissioner Unger is leaving the SEC at the end of this year. After Commissioner Unger's departure, three of the five SEC Commissioner positions will be vacant. The Report expressly says that "[t]he Commission and other Commissioners have expressed no views regarding the analysis, findings, conclusions, or recommendations" contained in the Report, so it is unclear whether the remaining two SEC Commissioners, Isaac Hunt or Chairman Harvey Pitt, endorse the Report. Presently, it is uncertain whether the Report will ever evolve into changes to Regulation FD.