Disclosure and sharing of sensitive information: a US securities regulatory perspective

Abstract

Purpose

The purpose of this paper is to examine from a US regulatory perspective various statues, rules and policies which affect how securities regulators in the US may disclose and share information.

Design/methodology/approach

This paper identifies and examines specific federal and state statutes, regulations and case law affecting the ability of federal and state securities regulators to share public and non‐public information.

Findings

The findings are that state and federal regulators in the US have wide latitude to obtain information (including use of subpoena power even if no violation of US law is alleged) on behalf of a foreign securities regulator, or one by one state jurisdiction on behalf of another state jurisdiction. There appears to be less restriction on state securities regulators from sharing non‐public information with other governmental entities and self‐regulatory organizations. Information sharing is trending toward informal arrangements rather than formal treaties with cumbersome protocols.

Practical implications

This paper provides a “roadmap” for persons interested in finding publicly available information in the US about companies which have issued securities in the US. It also explains how non‐public information may be shared between securities regulators.

Originality/value

Regulators, individuals and government departments interested in public policy matters will benefit from a review of US laws designed to facilitate the exchange of non‐public information in an effort to protect the integrity of the public securities markets.

Citation

Rutledge, G.P. (2006), "Disclosure and sharing of sensitive information: a US securities regulatory perspective", Journal of Financial Crime, Vol. 13 No. 3, pp. 339-347. https://doi.org/10.1108/13590790610678413