EC issues draft implementing measures for the Transparency Directive

The European Commission has published draft implementing guidelines for Directive 2004/109/EC, commonly known as the Transparency Directive. The Directive was created to boost investor protection safeguards and enhance market efficiency.

There are few surprises in the draft guidelines, which have been revised as result of feedback collected from interested parties in 2005. Many of the concerns raised then revolved around minimum standards for the dissemination of information. Respondents agreed that the responsibility for disseminating information should fall to the issuers, but the provision that issuers must insure that any third-party who disseminates information on their behalf must be “capable of doing so in adequate conditions” placed an unfair burden on issuers.

The draft guidelines still place the onus of third-party dissemination on the issuer, who must also ensure that that third-parties have adequate measures in place to guarantee regulated information is received by the relevant issuer, and that there is no risk of either data corruption or unauthorised access to unpublished inside data.

Click here for the guidelines in full.

BaselAlert.com