Remarks on the Importance of Insurance Regulation at an International Center

As a Commissioner at the U.S. Securities and Exchange Commission (SEC), I want to share my perspective on the importance of corporate disclosure and the impact it has on investors and markets. Corporate disclosure plays a crucial role in ensuring transparency and accountability in the financial system. Investors rely on accurate and timely information to make informed decisions about where to allocate their capital. When companies fail to disclose relevant information, it can harm investors and undermine market integrity.

One of the key challenges in corporate disclosure is striking the right balance between providing sufficient information to investors without overwhelming them with irrelevant details. Companies must navigate complex regulatory requirements to ensure that they are disclosing material information in a clear and concise manner. This can be particularly challenging in rapidly evolving industries where the pace of innovation requires companies to constantly reassess what information is material to investors.

Another important aspect of corporate disclosure is the need for companies to proactively disclose risks and uncertainties that may impact their business. Investors need to understand the potential risks facing a company in order to assess its long-term prospects. Failure to disclose these risks can lead to market disruptions and undermine investor confidence.

Effective corporate disclosure also plays a role in promoting market efficiency. When companies provide accurate and timely information, it helps ensure that stock prices reflect all available information. This, in turn, allows investors to make more informed decisions and reduces the likelihood of market manipulation or insider trading.

In recent years, there has been a growing recognition of the importance of environmental, social, and governance (ESG) factors in corporate disclosure. Investors are increasingly interested in understanding how companies are managing ESG risks and opportunities. As a result, there has been a push for companies to provide more ESG-related information to investors.

The SEC has a critical role to play in ensuring that companies are meeting their disclosure obligations. The agency oversees the regulation of securities markets and works to protect investors from fraud and misconduct. Through its enforcement actions and regulatory guidance, the SEC seeks to promote transparency and integrity in the financial markets.

In conclusion, corporate disclosure is a vital component of a well-functioning financial system. It provides investors with the information they need to make informed decisions, promotes market efficiency, and helps protect against fraudulent activities. As a Commissioner at the SEC, I am committed to supporting robust and transparent corporate disclosure practices that benefit investors and the overall integrity of the markets.