In the Report, it was noted that since individual market participants should wish to be correctly evaluated by the market, they should have the incentive to enhance disclosure, and a competitive mechanism to improve disclosure might be at work. However, as I have just pointed out, in the recent international financial crisis, one problem was that only insufficient information was provided to market participants.
If so, it becomes necessary to examine why the competitive enhancement of disclosure did not materialize and what could we do to make it work. The Committee, with inputs from market participants, is spending considerable efforts, with an aim to devise a framework to enhance disclosure.