The Council agreed on a general approach on the Commission's proposal for the Transparency Directive. One of the most important issues contained in the text agreed by the Council is the question of the interim management statements.
According to Article 6 of the draft text:
“1. Without prejudice to Article 6 of Directive 2003/6/EC, an issuer whose shares are admitted to trading on a regulated market shall make public a statement by its management during the first six-month period of the financial year and another statement by its management during the second six-month period of the financial year.
Such a statement shall provide:
– an explanation of material events and transactions that have taken place during the relevant period and their impact on the financial position of the issuer and its controlled undertakings, and
– a general description of the financial position and performance of the issuer and its controlled undertakings during the relevant period.
2. Issuers which under national legislation, the rules of the regulated market or of their own initiative, publish quarterly financial reports in accordance with the said legislation or rules shall not be required to make public statements by the management provided for in paragraph 1.
3. The Commission shall review no later than five years after the entry into force of this Directive, the transparency of quarterly financial reporting and statements by management of issuers to examine whether the information provided meets the objective of allowing investors to make an informed assessment of the financial position of the issuer.”
The European Council has recommended that this proposal be adopted by April 2004. The European Parliament is currently due to adopt its Opinion on the proposal in February 2004. If the Council were to agree all the amendments suggested by the Parliament in its first reading Opinion, the Directive could be adopted without the need for a second reading by the Parliament.
On the Investment Services Directive, the Council also adopted a statement calling for a “second reading agreement between the European Parliament and the Council” to meet the 2004 deadline.
Commission press release
Councilconclusions (prov. Version)
© Council of the European Union
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article