PRICE SENSITIVE INFORMATION AND SELF‐REGULATION BY UK COMPANIES AND FINANCIAL INSTITUTIONS — PART I

Abstract

This paper, which is published in two parts, is concerned with ‘behind the scenes’ self‐regulation by companies and financial institutions (FIs) relative to the ‘Dissemination of price sensitive information’ guidelines outlined in the Stock Exchange report of February 1994. This paper, therefore, investigates a private form of self‐regulation outside the more public form of self‐regulation overseen by the Securities and Investments Board (SIB). The common focal points for these private self‐regulation processes are close cooperative relationships between FIs and a large portion of their portfolio companies. In Part I of this paper these relationships are employed as a common base around which to illustrate self‐regulatory processes at the level of individual companies. Part II looks at self‐regulation by UK FIs and the connections between the legal, self‐regulatory and social control mechanisms are explored and new directions for research and regulation proposed. The second part of this paper will be published in the next issue of Journal of Financial Regulation and Compliance.