Taking A Broader Perspective On Disclosure And Compliance

The securities regulatory model is founded on the principle of disclosure – the more information an investor receives, the better equipped she will be in making investment decisions – or so the conventional thinking goes. Whether the current disclosure requirements are sufficient and effective for protecting investors remains the subject of active debate within the regulatory community. For example, the recent conference hosted by FAIR Canada and the Rotman School of Management's Capital Markets Institute entitled "Does Disclosure Work" focussed on a number of key questions that are front of mind for securities regulators, including whether investors are able to adequately process, understand and use the disclosure that they receive, how behavioral economics can assist regulators to enhance the efficacy of disclosure, and what other tools regulators can rely on to improve investor protection, such as enhancing investor education and financial literacy and