USA: SEC launches 21st century disclosure initiative

The US Securities and Exchange Commission has launched a review of the way in which it collects and discloses information about regulated entities.  The SEC's Chairman, Christopher Cox, stated:

On the 75th anniversary of the SEC, with so much new technology available to improve the quality of information for investors as well as the way investors acquire it, we're initiating a broad, introspective look at our business model. What hasn't changed in 75 years is the importance of full disclosure — sunlight remains the best disinfectant for problems in our capital markets. We'll be examining how to improve the way disclosure works, including tapping the full potential of today's technology and integrating it seamlessly into our regulatory approach. That could mean fewer confusing forms, and more useful information at investors' fingertips in a form they can really use"

For further information, click here. 

NB: The UK's Financial Services Authority embarked on a similar enquiry last month with the publication of a discussion paper titled Transparency as a Regulatory Tool. The purpose of the discussion paper was to start a debate about the way in which transparency can best be used to meet the FSA's regulatory objectives. For further information, click here.