ICI Supports CESR's Revised Draft on the Transparency DirectiveWashington, DC, May 26, 2005 - The Institute supports the advice of the Committee of European Securities Regulators (CESR) on possible measures that would implement the Transparency Directive. Background
The European Union (EU) Commission proposed the EU Transparency Directive in April 2003. The Directive is designed to: - better inform the public, by requiring investors to inform issuers of the acquisition or disposition of major holdings in companies;
- ensure transparency for investors, by requiring issuers to provide regular flows of information; and
- facilitate proxy voting by, among other things, requiring more information to be provided to investors in connection with general meetings.
In anticipation of the formal adoption of the Transparency Directive, the EU Commission has ordered CESR to provide procedures for implementing certain provisions of the Directive. The advice recently drafted by CESR addresses reporting major holdings of securities (including the exemption for asset management companies to disaggregate securities holdings). ICI Position
In a recent comment letter, the Institute supports CESR's revised draft advice, especially with respect to the conditions for exempting parents of non-EU management companies and investment firms from the requirement to aggregate their holdings with those of their subsidiaries. ICI also appreciates the additional clarifications in response to comments by the Institute and others. The comment letter also expresses support for CESR's recommendation that the Commission mandate that each competent authority publish on its website the calendar that applies to its regulated markets. Related Links
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