Shareholding disclosure and market transparency rules aimed at shareholders of public companies are essential to the well-functioning of financial markets, providing benefits to shareholders, listed issuers and regulatory authorities. Various types of shareholding disclosure rules exist to offer insight into the ownership levels of large shareholders and their behaviour in the market.
While providing clear benefits, some shareholding disclosure practices can bring a unique set of challenges. In this Asset Manager Perspective, we leverage our experience as a large, long-term investor in over 70 jurisdictions to discuss the practical aspects of the disclosure process from a shareholder’s point of view. We outline various disclosure types and challenges associated with the disclosure process. We also address other disclosure related themes, such as securities lending and collateral, as well as interaction with market regulators. From a practitioner’s perspective we discuss best practices for well-functioning disclosure regulations and processes.