FOX Business Network (FBN) Senior Correspondent Charlie Gasparino reports “remarks recently delivered by David Rosenfeld, Associate Regional Director & Co-Head” of the Securities and Exchange Commission (SEC) indicate “regulators are now looking to expand their definition of what constitutes insider trading and others types of securities fraud.”
Excerpts from the report are below.
On the Securities and Exchange Commission’s intention to strengthen regulations:
“Remarks recently delivered by David Rosenfeld, Associate Regional Director & Co-Head at the SEC’s New York office suggest that securities regulators are now looking to expand their definition of what constitutes insider trading and others types of securities fraud. Rosenfeld made his comments at a February 2nd conference sponsored by the Directors Roundtable Institute, titled ‘A new Era of Federal Prosecutions: Challenges for Main Street and Wall Street.’ He appeared on the panel with five top Wall Street attorneys to discuss the current crackdown on insider trading and how regulators are broadly enforcing other securities laws. About 300 people attended, many of them senior partners at major law firms, or senior legal officials at big banks.”
On how his remarks indicate tougher SEC regulations are to come:
“Rosenfeld indicated that these private communications could violate Regulation FD, this person said, even though analysts routinely call corporate executives to get additional color and clarification on earnings; such practices have been considered legal in the past, legal experts say. In addition, Rosenfeld called ‘troubling,’ other activities that are commonplace in the securities business, such as one-on-one meetings between analysts and corporate officials during so-called ‘analyst days’ where companies discuss corporate issues with analysts and investors. Rosenfeld said these meetings could also violate rule FD and insider trading laws.”
On the SEC’s response to these claims:
“SEC spokesman Jon Nester said some of Rosenfeld’s remarks have been taken out of context. ‘He was basically telling people to be careful,’ Nester said.”