Comparative Study of the Legal Framework of Securities Disclosure Requirements in Kuwait and the U.S.

This paper examines the regulatory framework of disclosure in Kuwait in comparison with the situation in the United States of America. It covers the theoretical arguments for and against mandatory disclosure and then engages in a regulatory analysis of the rules governing disclosure in Kuwait and the U.S. The main areas that are explored in this paper include, inter alia, the disclosure of interest; periodic and real time disclosures; and rumours and duties to disclose in both jurisdictions. Afterward, anti-fraud provisions and their role in enhancing the disclosure framework are discussed and the investigation concludes that the absence of an anti-fraud provision in securities regulation in Kuwait is undermining the efficiency of the regulatory framework of disclosure in the country. Finally, the paper concludes that regulatory reform is needed in Kuwait to fill in the gaps in the current structure and in particular the current available remedies. The scope of disclosure should also be expanded to capture all major sensitive information that needs to be disclosed to the public and the shareholders.