Since then, we have surmised that if we make clear our expectations around disclosures in respect of financials, we may be able to help issuers improve their exchange filings around such matters. Better disclosures will call for fewer regulatory queries as issuers take it upon themselves to ensure their disclosures are clear, current and complete. Overall governance will improve as the market learns to self-regulate.
In 2021, Singapore Exchange Regulation (SGX RegCo) began using artificial intelligence and regtech solutions to enhance its monitoring of issuers’ financials. These solutions were initially used to automatically extract relevant financial data. Technology was also used to compute certain pre-determined financial indicators.
The data generated helped SGX RegCo identify issuers where queries on their financials were warranted. The ultimate objective was to ensure that boards fully apprise investors of the issuer’s financial position so that investors can make an informed investment decision and better understand its financial performance.
