What Are the Biggest Compliance Traps for Newly Public Founders (Reg FD, Section 17(b), Rule 10b-5)?

Early missteps often come from well-meaning outreach. Reg FD requires that material information be disclosed broadly and simultaneously, no selective sharing with a single investor or podcast host. Section 17(b) prohibits undisclosed paid stock promotion; if you compensate anyone to tout your stock, the compensation must be fully and conspicuously disclosed. Rule 10b-5 is the catch-all anti-fraud provision, misstatements or omissions can trigger liability even without intent to deceive.

Build muscle around disclosure controls: centralize how press releases, investor decks, and social posts are drafted, reviewed, and timed. Train executives and “spokespeople” on what they can and cannot say; adopt 10b5-1 trading plans if insiders will sell in the future. Vet third-party IR vendors carefully—ask for scripts, disclaimers, and distribution lists, and memorialize compensation transparently to avoid 17(b) issues.

Create a repeatable cadence: quarterly updates aligned to SEC filing dates, measured milestone PRs, and investor content that explains rather than hypes. Keep website and deck language synchronized with EDGAR, investors notice inconsistencies. When in doubt, disclose broadly or wait; surprises are worse than patience.



Meraki Partners installs practical compliance guardrails that let founders communicate confidently without stepping on regulatory landmines. We keep the message clear, compliant, and consistent.