The right to information and the capital market

• Author: Alina Popescu
• Position: Ph. D Student, the Bucharest University of Economic Studies
• Pages: 138-146

The right to information and the capital market

PhD. student Alina POPESCU

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Abstract

The right to information, the citizen's fundamental right, must be regarded as a

right whose scope is wider, to the extent of social evolution. More and more often, the need

for individual information is observed in the most diverse areas, including the economic

field. In my o pinion, economic information cannot be approached without reference to

information regarding capital markets. Th e information provided to investors must be up-

to-date, real, not likely to distort the natural course of the market or be manipulative or

misleading. Citizens need market information as an individual right to information, but

society as a whole needs well-informed citizens with a minimal economic and financial

culture, in order to develop harmoniously and avoid potential attacks on system stability. A

relevant, accurate and current piece of information provides the investor with protection

and gives him the opportunity to make informed economic and financial decisions. Also,

free movement of capital market information, within the limits of competition rules,

provides the guarantee of a stable, fair and risk-free market.

Keywords: right to information, capital market, securities, privileged information .

JEL Classification: K10, K22

1. General considerations

Providing the right to information in the field of financial investments is

essential for achieving a fair value market without any abuse or manipulation. In

this area also, in my opinion, we can discuss about the bivalence of the right to

information: on the one hand, the right of the investor to information, and on the

other hand the right of authorities to request information from investment firms,

information which, within the legal limits, they make available to the public.

Transparency and fair information are the guarantees of a balanced and fair market.

In the economic and financial field, information plays a major role both

from the point of view of investors and from the point of view of the supervisory

authority. The Report of the Larosière Group (2009) recommends the authorities to

regulate the financial sector more severely and effectively so as to create a macro-

prudential framework that should ensure an upright market without financial crisis-

inducing incidents. The same report recommends increased transparency in

financial markets, especially for systemically important investment funds, and

setting clear requirements for certain information to be provided to supervisory

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Alina Popescu - Ph. D Student, the Bucharest University of Econo mic Studies, avpalina_16@

yahoo.com.