Japanese authorities are set to recommend new fair disclosure rules that aim to prevent company executives from leaking insider information, part of Prime Minister Shinzo Abe's push to improve corporate governance and encourage foreign investment.
Marking the first time that Japan will adopt statutory rules on corporate disclosure, the move will likely broaden the scope of current requirements put in place by the Tokyo Stock Exchange and clarify what constitutes material and insider information.
While the extent of corporate leaks in Japan is hard to gauge, the government is keen to shake up a business culture that has often been criticized for prioritizing the interests of executives over shareholders.