Brussels, 22/12/2004 (Agence Europe) - The European Commission has welcomed the definitive adoption of the Directive on minimum transparency requirements for listed companies. The Commission made its original proposal in March 2003. The Council and the Parliament informally reached a “fast-track” agreement on it in May 2004, without the need for a second reading. The President of the Council and the President of the European Parliament have now signed it, marking its formal adoption. It then only required translation into the EU's official languages. In a press release, Internal Market Commissioner Charles McCreevy said “This is another important milestone towards the completion of the Financial Services Action Plan."
The Directive must be implemented by Member States within two years of its publication in the EU's Official Journal, which should take place in the next few weeks. The Directive will raise the quality of information available to investors on companies' performance and financial position as well as on changes in major shareholdings. Under the Directive, all securities issuers will have to provide annual financial reports within four months after the end of the financial year. Investors in shares will receive more complete half-yearly financial reports. Those issuers who do not publish quarterly reports will need to provide quarterly management statements. Bond issuers will also be required to publish half-yearly reports. The Directive is also expected to improve the European dissemination of information on issuers, removing a barrier to cross-border investment. The Directive on transparency requirements revises and replaces provisions of Directive 2001/34/EC on the admission of securities to official stock exchange listing.
The Directive completes a package of Financial Services Action Plan measures adopted over the last two years (the IAS Regulation, the Market Abuse Directive, the Prospectus Directive) to establish a common financial disclosure regime across the EU for issuers of listed securities. Other related Commission initiatives cover company law and corporate governance.