 "Regulatory overreliance on disclosures is penalising industry and confusing investors")
Across the world, financial market regulation is largely built on the edifice of a disclosure regime. Regulated entities are mandated to make periodic and event-based disclosures. This is surely a time-tested and sound practice — after all, more sunlight is always welcome.
The disclosure system, combined with the principle of caveat emptor — or “let the buyer beware,” which implies that the buyer purchases at their own risk — is also comforting for regulators. In a way, prescribing disclosures gives them a certain satisfaction of a job well done. This column examines the efficacy of the much-touted disclosure regime in
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