Mandatory Disclosure and the CSA Proposed Legislation for Securitized Products
One of the main factors that spurred the 2008 financial crisis was the trading of securitized products without a clear understanding of the risks that those products bore. I argue that an appropriate regime of mandatory disclosure is the primary instrument regulators should refer to in order to corr...
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| Language: | en_ca |
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2012
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| Online Access: | http://hdl.handle.net/1807/33345 |
| Summary: | One of the main factors that spurred the 2008 financial crisis was the trading of securitized products without a clear understanding of the risks that those products bore. I argue that an appropriate regime of mandatory disclosure is the primary instrument regulators should refer to in order to correct the informational asymmetries that are present in the market for securities products. Subsequently, I take into consideration the CSA proposed legislation for the mandatory disclosure of securitized products and analyze its main components under the light of the principles of investor protection and market efficiency. I find that the new legislation should be welcome by market operators because it is a good balancing effort between the necessity to protect the investors and fostering the efficiency of the market. |
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