Articles

Proposal for an Act to implement the amended Transparency Directive

Proposal for an Act to implement the amended Transparency Directive

Proposal for an Act to implement the amended Transparency Directive

01.07.2015 NL law

The Dutch Act to implement the amended Transparency Directive (2013/50/EU) was submitted to Dutch Parliament on 18 June 2015. The required implementation date is 26 November 2015. As a result of this proposal, various transparency obligations will be changed for issuing institutions.

Background

The Transparency Directive contains various disclosure obligations for issuers whose securities are listed on a regulated market. The amended Transparency Directive is the result of an evaluation conducted by the European Commission on the effects of the Transparency Directive on the market. It aims to simplify compliance with the transparency directive for small and medium-sized enterprises.

Amendments

The amendments cover different topics but are primarily aimed at reducing certain transparency requirements. They include:

  • Publication of quarterly statements for listed companies will no longer be required.
  • Issuing institutions will be required to make a separate annual report available to the public about payments to governments in the countries where they operate. This requirement applies to issuing institutions who are active in the oil, gas and mining industry or in the primary forest logging industry.
  • Sanctioning power of the financial supervisors is amended with respect to the directive. This translates to an increase of the maximum fine from € 4 million to € 10 million.
  • Extension of the deadline for publishing half-year financial reports from two to three months after the end of the reporting period.
  • Extension of the period during which financial reports have to be publicly available from five to ten years.
  • The definition home member state is changed to prevent the possibility of avoiding supervision by any European supervisory authority.

Practice

In practice, the amended Transparency Directive and the Dutch implementing Act thereof will lessen the administrative burdens of issuing institutions.

Related news

21.07.2020 NL law
Financiële sector moet klimaatrisico’s bespreken met klanten

Short Reads - Financiële instellingen moeten in gesprekken met klanten aandacht besteden aan klimaatrisico’s. Bij zakelijke klanten met name over de mogelijke impact van klimaatrisico’s op hun bedrijfsvoering en bij hypotheekeigenaren bijvoorbeeld over de verduurzaming van hun woning. Ook in het licht van het Klimaatcommitment van de financiële sector is dit van belang. Dit blijkt uit een bloemlezing van acht Nederlandse financiële instellingen, verenigd onder het Platform voor Duurzame financiering.

Read more

29.06.2020 NL law
European Banking Federation Guidance on testing of Cloud Exit Strategy

Short Reads - Financial institutions may outsource critical or important functions to cloud service providers (“CSPs”). On 25 February 2019 the European Banking Authority (“EBA”) provided guidelines (the “EBA Guidelines”) laying out the framework for outsourcing arrangements. The EBA Guidelines require institutions to have a comprehensive, documented and sufficiently tested exit strategy (including a mandatory exit plan) when they outsource critical or important functions.

Read more

29.06.2020 NL law
Nieuwe publicaties van het netwerk van centrale banken en toezichthouders

Short Reads - Het Network for Greening the Financial System (NGFS) benadrukt opnieuw het toenemende belang van klimaatverandering voor centrale banken en toezichthouders. Klimaatverandering leidt tot financiële risico’s en dat betekent dat centrale banken en toezichthouders klimaat- en milieugerelateerde risico’s in hun beleid en toezicht moeten integreren.

Read more

26.06.2020 EU law
E-book: 'Practical implications of ESG disclosure regulations'

Articles - As of 10 March 2021, many financial market participants and financial advisers will be subject to new disclosure obligations following the entry into force of the EU Sustainable Finance Disclosure Regulation (SFDR) on 29 December 2019. The SFDR sets rules on transparency with a view to promoting both the integration of sustainability risks into investment processes and disclosures to investors.

Read more