Promoting Information in the Marketplace for Financial Services

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This book offers a comparative global analysis of financial market disclosure regulation, authored by experts from Australia and Germany. It situates its findings within a global business context, drawing on legal perspectives and examples from Africa, Asia, the Middle East, and South America. Following financial "booms" and "busts," new disclosure laws are often enacted in politically charged environments, leading to redundant and overlapping regulations that overlook past lessons. The authors argue that the persistent failure in ensuring adequate disclosure is central to financial services regulation, advocating for a simple, principles-based amendment to statute law that mandates full market transparency. This would enhance the effectiveness of mandatory continuous disclosure. The book explores the rationale behind disclosure regulation, emphasizing its critical role in the efficient functioning of financial markets. It assesses the sufficiency of common and civil law regarding broker/client disclosure and concludes that mere industry licensing does not ensure market awareness. While acknowledging the shortcomings of securities commissions in promoting good disclosure, it highlights the potential of co-regulation—where a commission collaborates with financial markets, like stock exchanges—to improve outcomes. This approach builds on self-regulation and reflects the sentiment of former SEC Chairman William O. Douglas, who li