Commission proposal on Transparency Requirements

26 March 2003




26 March 2003 Commission proposal on transparency requirements The Commission presented a proposal for the new Directive on minimum transparency requirements for companies that trade securities on a regulated market.
This Disclosure Requirements Directive was published after more than two years of consultations with national authorities, security issuers, investors, auditors, stock exchanges and market participants. The proposed Directive will apply to all companies whose securities are admitted to trading on a regulated market in the EU.

The proposal requires all securities issuers to disclose to the public periodically:

  • financial statements based on international accounting standards,
  • a management report, within three months of the end of each financial year,
  • a half-yearly condensed financial report based on international accounting standards on interim financial reporting (IAS-34), and
  • an update of the last annual management report.

    In addition, share issuers would also need to publish a less extensive quarterly financial information report for the first and third quarter of a financial year.

    Companies who issue only debt securities, who are currently not subject to any interim reporting requirement at all, would under the proposal be required to issue half-yearly financial reports for the first six months of a financial year.

    The Commission's implementing measures will be developed on the basis of technical advice provided by the Committee of European Securities Regulators (CESR) within the so-called Lamfalussy procedure. The Commission hopes that the Directive will be implemented by all Member States by 2005 at the latest.

    Commission proposal on Transparency Requirements Directive
    Commission press release

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