Brussels, 28/12/2001 (Agence Europe) - The European Commission has published on the internet the results of a consultation, launched in July 2001, on its forthcoming proposal for a directive to update existing Community rules on the information which has to be regularly provided by companies whose securities are traded on regulated markets. This is one of the first examples of the consultation process instigated as a result of the Stockholm European Council Resolution on European securities market regulation that invited the Commission to consult market participants, securities issuers and consumers when preparing new legislation on securities. It also recommended that the results of such consultation should be published.
The main points to emerge from the consultation were as follows: 1) Consolidation: The Commission document suggested the consolidation into a single legal text of all existing periodic and ongoing disclosure obligations for issuers whose securities are admitted for trading on a regulated market. In general, respondents broadly endorsed this approach. Some suggested that the initiative should also seek to strengthen the current disclosure requirements on voting rights in major holdings, e.g. the reduction of the thresholds (currently 10%) exempting owners from disclosure of acquisition or disposal of shares to the issuer. 2) Upgrading of periodic disclosure obligations: The Commission sought views on whether to upgrade existing regular reporting requirements to meet international best practice, for example by introducing international accounting standards (IAS) and quarterly financial reports. While respondents welcomed the proposal to align disclosure standards with IAS, views on quarterly reporting were mixed. Most securities regulators, stock exchanges and investors fully backed the idea of quarterly reporting but many issuers were hesitant, suggesting a graduated approach based on the size of the issuer and the risk linked to the type of security concerned. Other issuers were opposed to quarterly reporting. 3) Publication in electronic format: The consultation document suggested allowing publication of information not only via newspapers, but also via the Internet. The vast majority of responses supported this idea but newspaper editors and news agencies were opposed, since access to the Internet is not available everywhere in the EU. 4) Control by Member State authorities: The Commission asked whether it was appropriate for each Member State to have a single authority responsible for these issues. There was wide support for the idea of such single authorities. Stock exchanges stressed the need for an approach based on the successful co-operation between administrative authorities and stock exchanges. 5) Possibility of future implementing measures following the recommendations of the Lamfalussy report: To ensure the necessary flexibility of the system, the Commission suggested making technical adaptations and clarifications via comitology decisions. A clear majority of respondents favoured a more flexible regulatory structure in which the Commission, assisted by the European Securities Committee, could adopt implementing measures. Others asked for further clarification of this approach and put the emphasis on legal security, democratic control and effective consultation of the business community. (A summary of the replies is available at: http: //europa.eu.int/comm/internal_market/en/finances/mobil)