Web site records important to new Reg. FD web disclosure
The new Reg. FD guidance governing web disclosure has underlined the importance of the corporate web site as a primary source of information for investors and the capital markets. As more issuers look to fully leverage web technologies to meet compliance requirements, the need for integrated disclosure controls and comprehensive records becomes increasingly important.
Determining the best approach to these requirements should not be something delegated to the web master or IT department (although they will ultimately be involved). These are communications, compliance and risk management issues – requiring the involvement of Corporate Legal Counsel, Investor Relations and the Disclosure Committee.
Strong disclosure controls & procedures, supported by consistent, thorough and searchable records is an issuer’s best defence in the wake of a regulatory inquiry. To reduce risk and liability, records should be able to demonstrate due diligence by documenting:
- what was on the web site at any given point in time (including all downloads, presentations and information populated through data feeds)
- the accessibility of the content (to illustrate that negative information wasn’t ‘buried’)
- the full chain of approvals/timelines for information posted to the site
There are several ways that issuers try to capture and maintain records of their web site disclosure including:
