Brussels,

Transparency requirements for listed companies

Under EU  Transparency Directive, issuers of securities on regulated markets are required to disclose specific key information to ensure transparency for investors. These requirements are vital for the proper functioning of capital markets, providing investors with reliable and timely information about the performance and assets of the companies they invest in.

Key Components

  1. Transparency Directive: The primary legislation governing these requirements is the Transparency Directive (Directive 2004/109/EC), which was amended by Directive 2013/50/EU. This directive mandates that issuers must prepare annual financial reports using the European Single Electronic Format (ESEF), incorporating XHTML and, where applicable, iXBRL for consolidated financial statements under International Financial Reporting Standards (IFRS)​
  2. Officially Appointed Mechanisms (OAMs): Each EU member state is required to establish a central storage mechanism for the disclosed information of listed companies. These mechanisms ensure public access to this information and feed it into the European Single Access Point (ESAP), which aims to provide comprehensive EU-wide access to financial and capital markets information by 2027​ 
  3. European Single Access Point (ESAP): As part of the 2020 Capital Markets Union action plan, the ESAP will gradually integrate disclosures required by the Transparency Directive, the Prospectus Regulation, and the Short Selling Regulation, with full implementation expected by 2030. This platform will facilitate seamless access to financial information across the EU​

Policy Making Timeline
​
  • January 9, 2024: Entry into force of the Regulation establishing ESAP.
  • November 25, 2021: Legislative proposal for ESAP adopted by the European Commission as part of the Capital Markets Union package.
  • April 21, 2021: Report on corporate sustainability reporting, including reviews of relevant directives.
  • May 29, 2019: Publication of the Commission Delegated Regulation (EU) 2019/815, setting up the ESEF​

​Relevant Legislation