EU Transparency Directive (European Union Transparency Directive)

The EU Transparency Directive (European Union Transparency Directive) is a set of regulations that requires listed companies to disclose certain information to the public. The directive is designed to improve market transparency and to protect investors.

The directive requires companies to disclose their financial statements, as well as certain other information such as their corporate governance arrangements. Companies must also make this information available on their website.

The directive applies to companies that are listed on a regulated market in an EU member state.

What is the transparency regulation?

Transparency regulation is a form of financial regulation that requires publicly traded companies to disclose certain financial information to investors and the public. This information includes things like the company's financial statements, insider trading activity, and other material information.

The purpose of transparency regulation is to promote fair and efficient markets by providing investors with the information they need to make informed investment decisions. It also helps to prevent fraud and other illegal activity by making it easier for regulators to identify and track suspicious activity.

There are a number of different transparency regulations around the world, with each jurisdiction having its own specific requirements. However, there are some general principles that are typically followed. For example, companies are typically required to disclose material information in a timely and accurate manner, and they must also take steps to ensure that this information is not misleading.

There are a number of different agencies and organizations that are responsible for enforcing transparency regulations, including securities regulators, stock exchanges, and self-regulatory organizations.

What are Esef requirements?

ESEF is the European Single Electronic Format for the filing of annual financial reports. It is a structured, extensible and machine-readable format based on the XBRL standard.

In order to meet ESEF requirements, annual financial reports must be filed in the ESEF format. This can be done either by using an ESEF-compliant software application, or by converting existing financial reports into the ESEF format.

ESEF-compliant software applications are available from a number of different vendors. In order to ensure compliance with ESEF requirements, it is important to choose a software application that has been certified by the European Securities and Markets Authority (ESMA).

ESEF-compliant software applications must be able to generate financial reports in the ESEF format. They must also support the use of the Inline XBRL format, which is a requirement for the filing of ESEF reports.

The Inline XBRL format is a standard for the embedding of XBRL data within HTML documents. It allows financial reports to be displayed in a web browser, without the need for a separate XBRL viewer.

ESEF-compliant software applications must also support the use of the XBRL Dimensions standard. XBRL Dimensions is a standard for the classification of financial data. It allows financial reports to be grouped and aggregated in a consistent manner.

Which Directive has requirements in relation to transparency and disclosure?

The UK's Corporate Governance Code includes requirements in relation to transparency and disclosure. Specifically, Principle 7 states that "Organisations should maintain effective two-way communication with shareholders and other key stakeholders".

In order to comply with this principle, listed companies are required to disclose certain information to the public on a regular basis. This includes information on the company's strategy, performance, risks and prospects. Listed companies are also required to hold an annual general meeting (AGM) at which shareholders can ask questions and hold the board to account.

There are a number of other disclosure requirements that apply to listed companies in the UK, such as the requirements to publish an annual report and accounts, and to make announcements through the Financial Conduct Authority's Disclosure and Transparency Rules.