Transparency Directive

The aim of this Directive is to enhance transparency on EU capital markets by establishing rules for the disclosure of periodic financial reports and of major shareholdings for companies whose securities are admitted to trading on a regulated market in the EU.

The key objectives of the Directive are:

To improve annual financial reporting by issuers of securities through the disclosure of an annual report;
Increased disclosure of periodic financial information by issuers of shares through a mix of quarterly financial reporting for the first and third quarters of the financial year, and a more detailed half-yearly financial report;
To introduce half-yearly financial reporting for issuers of only debt securities; and
More frequent disclosure of changes to major shareholdings within stricter disclosure deadlines.

The Transparency Directive is being implemented in the UK through provisions in the Companies Bill and FSA rules. The deadline for implementation is 20 January 2007.

Transparency Directive

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