CONTINUOUS disclosure of information is critical to fostering confidence in the securities market. So says, Glenford McLeish, senior director of Securities, at the Financial Securities Commission.Speaking against the background of recent corporate failures in the United States, he pointed out that these events have emphasised the need for the relevant authorities to address various overarching reforms including corporate disclosures, corporate governance and the regulation of the accounting profession among others.
Mr. McLeish was speaking at the launch of the Jamaica Stock Exchange's Market Research Competition last Tuesday at the Courtleigh Hotel.
"Markets are today more interconnected than they have ever been and repercussions are therefore global in their reach. We also host participants acting across borders and we do know that investors assess the legal and regulatory framework in relation to international standards and not necessarily in relation to a subject market's development.
"Our market does not have to be sophisticated as those developed markets and in many ways it is not. That however, should not mean a relaxation of principles and rules geared at timely, full, fair and continuous disclosure," he said.
Mr. McLeish pointed out that in order to build and retain confidence, securities markets must operate in "a fair, efficient and transparent manner" and for this a framework for a process of continuous disclosure of information to the market was critical.
"Investors are best able to make informed investment decisions when they have access to full and fair information regarding an issuer, its securities and the business transactions in which it is engaged," he noted.
The Market Research Competition was initiated by the JSE to increase the involvement of stock market analysts and encourage deeper analysis of performance of listed companies. It also seeks to stimulate greater knowledge-based interest in the market leading to increased participation by investors.
Georgia Trieb, analyst of JMMB Securities Ltd. was the winner of the first quarter of the competition which is being partly sponsored by Air Jamaica.
