IF A tree falls in a forest and everyone claims he or she did not hear it, did it make a sound? That metaphysical question could probably keep philosophers in business for another century.

For regulators, though, a similar question demanding a more immediate answer has arisen in the wake of Singapore Post's recently concluded corporate governance special audit: If a disclosure lapse has allegedly zero impact on a deal decision, is it still a breach that warrants regulatory action?

If it is, then letting it slide - whether in appearance or otherwise - could inadvertently open the doors to moral hazard.