ICI Comments on Measures to Implement Transparency Directive Across the EUWashington, DC, July 28, 2004 - The Institute supports consistent and uniform implementation of a European directive that would ensure the transparency of information about issuers whose securities traded on a regulated securities market. 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 this fall, the EU Commission has ordered the Committee of European Securities Regulators (CESR) to provide procedures for implementing certain provisions of the Directive. ICI Position
The Institute's letter comments on specific items for which the EU Commission seeks technical advice, including the standard form for disclosure of major holdings and a calendar of trading days for purposes of major holdings notifications. The Institute also suggests that CESR consider not requiring both the asset managers and their clients to make notifications to issuers because doing so would prove unnecessarily burdensome and introduce confusing information in the marketplace. The Institute suggests that only an entity exercising voting rights should notify issuers. Related Links
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