Brussels, 17/07/2001 (Agence Europe) - The European Commission launched a consultation on the transparency obligations of publicly traded companies. The parties concerned - markets, investors, consumers, and regulatory authorities - are invited to answer, before 30 September, the questions put forward by the Commission.
This consulation follows on from the recommendations in the report by the Lamfalussy committee and the action plan adopted by the Lisbon summit to integrate the European financial markets by 2005. The harmonisation of requirements in terms of information will provide adequate guarantees to all the European investors, whatever the Member State in which they reside. For lack of reform, the inconsistencies will continue and the European financial markets will remain fragmented, said Commissioner Frits Bolkenstein in a Communiqué. The main themes of the consulation, according to the Communiqué, are as follows:
- Consolidation of transparency requirements: In order to increase the certainty as to the law applicable, the Commission is considering to regroup into a single text all the periodic obligations (annual and interim reports) and ongoing obligations (for example, changes in the structure of major holdings or at the company head) presently applicable to issuers whose shares are admitted for flotation on a regulated market. The Commission questions the parties over the pertinence of this consolidation.
- Upgrading of period disclosure obligations: The Commission is considering the possibility of upgrading the requirements of the existing directive on regular reporting to align itself with the best international practices; for example, financial statements would have to follow international accounting standards (IAS) and interim reports would have to be published at the end of each quarter instead of half-yearly.
- Upgrading of ad hoc disclosure obligations: In order to avoid market distortions, the Commission is considering improving the provisions on important information that is not brought to the attention of the public and may lead to substantial fluctuations in the price of securities.
- Publication in electronic form: The present requirements for publication in one or several newspapers or equivalent means are out of date in the Internet world. Regular and continuous information should be freely accessible via this network, feels the Commission.
- Control by home administrat8ive competent authority: Concerned with simplification and efficiency, the Commission is studying the possibility of calling for the establishment of a single competent authority in each Member State. This will concern an independent regulatory authority for the securities sector of the home Member States, responsible with ensure the protection of investors and market transparency.
- Possibility of future implementing measures following "Lamfalussy" report recommendations: To ensure the necessary flexibility, in accordance with the guidelines provided by the Committee of the Wise and approved by the Stockholm European Council, the Commission feels that it should be possible, in the future, if necessary, to bring technical modifications and clarifications in order to keep pace with market developments and avoid rapid obsolescence of the legal regime.
The consulation is on: http: //europa.eu.int/internal)market/en/finances/mobil/transparency.htm.
