Greetings! I just got back from two full weeks of family vacation. Great time in Colorado. Highlight of the trip was the rodeo in Edwards, just outside of Vail.
Here's what's happening around FEI. Much going on as usual. Check out some of the upcoming chapter events too. Jessie Ventura and Arthur Levitt are scheduled to speak to the Twin Cities Chapter this fall (different times of course). We'll webcast both if we can. Paul Volcker is addressing FEI members in September too. Our technology forum in Las Vegas is nearing a sell-out. Don't forget about our top-seller, Current Financial Reporting Issues Conference. Sign-up on the web site.
SEC Fair Disclosure
The new rules are designed to promote full and fair disclosure of information to the public. The existing case law definition of material information is that "information is material if there is a substantial likelihood that a reasonable shareholder would consider it important in making an investment decision." The SEC deems information is nonpublic if it has not been disseminated in a manner making it available to investors generally. The rules cover disclosures that are intentional and unintentional. From now on, when material information is intentionally disclosed, it must be a disclosed simultaneously to the public on a "broad, nonexclusionary basis." However, there are exemptions for communications with the press, customers, suppliers, and rating agencies because they are not expected to trade securities on the basis of the information. The selective disclosure rules apply to communications with:
When an unintentional disclosure of material information is made, it must be publicly disclosed within 24 hours. The required public disclosure can be made by filing a Form 8-K or by other means designed to reach the public.
The disclosure restrictions will apply only to senior company officials and those officers, employees and agents who regularly communicate with the investment professionals listed above and not lower level employees. A violation of the disclosure rules will not lead to an enforcement action under the securities laws' anti-fraud provisions. Nor do they create a liability for fraud for companies solely because of a disclosure violation.
FEI supported these new regulations in general. Many companies felt that the rules reflected existing practices in most companies. We plan to do some survey work among FEI members to determine the extent of any changes in internal in practice and guidelines.
Boris Feldman, a member of Wilson Sonsini Goodrich & Rosati, in Palo Alto, Calif., prepared a worthwhile FAQ document on Regulation FD. Access it here.
FASB Board Members
Discounted Term Life
On Oct. 1, FEI members up to age 74 may begin participation in the CPA Flexible Life Insurance Plan. Trust participation of up to $750,000 for FEI members is on the same basis as members of State Societies of CPAs. Maximum participation of up to $2 million is available if you are also an AICPA member.
If you would like more information or wish to request CPA Flexible Life Insurance Plan coverage for the Oct. 1 Plan Entrance Date, please contact the Trust directly. Available on the same date is the alternate Trust plan for individual life insurance, the Group Variable Universal Life Insurance Plan (GVUL), which in addition to life insurance provides tax-deferred investment opportunities in equity funds. Questions on CPA Flexible Life Insurance Plan participation and information on GVUL may be obtained by visiting Aon Insurance Services, the Plan Agent's, website at http://www.cpai.com, by calling them directly at 800.223.7473, faxing them at 800-AICPAIT, or emailing John Pfeiffer at email@example.com.
Forum on Finance and
This is an outstanding opportunity to network with the e-Business Global leaders. Also, findings from two major research efforts - the annual FEI/CSC Survey of Technology Issues for Financial Executives; and the FERF B2B e-Commerce study, will be presented during the program.
Plan to attend Sept. 18-19 at the Four Seasons Hotel in Las Vegas. Click here to register.
FEI YELLOW PAGES: A Great Place to
Dinner with Colorado Chapter
New FEI Staff
FEI Deal Doers
New SEC Deputy Chief
Job Posting - CFO
To view more jobs, visit the FEI Career Center.
That's all for now,