Materiality in corporate continuous disclosure: Historical uncertainty, current challenges and future opportunities

The continuous disclosure of information is integral to the regulation of the Australian Securities Exchange. Central to the continuous disclosure requirements is the obligation to disclose material information to the market. However, the threshold for what qualifies as material information, that is, the "materiality threshold", has been an historically uncertain element of the requirements. Further, the application of the threshold is becoming more challenging due to developments in the way information is communicated and traded. While these developments offer an opportunity for increased efficiency and communication in the market, they must be regulated appropriately so as to not threaten market integrity. This article explores the historical uncertainty of the materiality threshold and its application in the current disclosure environment. It suggests that the existing materiality threshold has the capacity to accommodate these changes in the market but that investors may need to accept greater responsibility for their interests going forward.