Quarterly reporting for EU public companies – new transparency law

The European Commission has presented a proposal for the Directive, which would introduce a mix of detailed half-yearly financial reports and what Internal Market Commissioner Frits Bolkestein yesterday described as "light, but reliable, quarterly financial information." He adds that, "compared to current practice in the US we have opted for less demanding publication periods".

The proposal aims to enhance investor protection, attract investors to the European market place and improve the efficiency, openness and integrity of European capital markets.

It would also remove certain national barriers linked to transparency requirements, which may discourage issuers from having their securities admitted to trading on more than one regulated market in the EU.

The proposed Directive will apply to all companies whose securities are admitted to trading on a regulated market in the EU. It will be submitted to the European Parliament and the EU's Council of Ministers for adoption under the so-called "co-decision" procedure.

The full text of the proposal and other documents are available on this page of the Commission's web site.