European Regulators Recommend Measures for Implementing Transparency DirectiveWashington, DC, March 7, 2005 - The Institute supports advice the Committee of European Securities Regulators (CESR) has given to the European Commission regarding the implementation of 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 states that CESR has taken a careful and thoughtful approach to the implementing measures. ICI supports the draft 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 comments on the calendar of trading days, the circumstances under which shareholders should have learnt of the acquisition or disposal of shares, and the standard form for reporting major holdings. Related Links
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