 |
Sarbanes-Oxley News & Developments
Watch Your MouthAs Reg FD enters its fourth year, enforcements so far offer hints on how to communicate.
> > When regulation fair disclosure took effect in October 2000, finance executives felt their own words might eventually hang them. As a main spokesperson for a company on financial matters, a CFO is in the position of routinely answering analysts and shareholders questions - especially about earnings prospects.
The initial wariness has eased a bit, Reg FDs effort to standardize the flow of corporate information to all interested parties has resulted in only five completed federal investigations of violations so far. Four became public in November 2002, and the latest, involving pharmaceuticals giant Schering-Plough Corp., emerged September 2003. There has been just one high-profile CFO casualty: Franklyn Caine of the Raytheon Co. who resigned in December 2002, a few weeks after the SEC named him in a selective-disclosure action.
The SEC is still watching.
Source: CFO
Published:2003-12-09
|
|
