The regulation of information dissemination in free markets is a vital aspect in ensuring that investors and business are protected, and security markets maintain their integrity. As the internationalization of the world’s securities markets increases due to changes in economic forces, technology innovations and deregulation of major capital markets — accurate and full disclosure is necessary to ensure that information transparency assists the timeliness of the security price transformation process. According to Section 4 of the IOSCO Principles, the three core objectives of effective securities regulation are the protection of investors, the assurance that markets are fair, efficient and transparent and the reduction of systemic risk. Disclosure is a core component in each of these three objectives such that it ensures investors are able to make accurate and timely decisions, that the fairness of the market is maintained through transparency and abstraction of improper trading practices, and all relevant securities information is publicized to ensure that corporate failure is accurately forecasted.
