The European Union is struggling toward a new Transparency Directive intended to pressure companies to be more forthcoming with the news—good and bad—they must report to investors.
Gone is the rule that the EU’s 8,000 listed companies must report financial information on a quarterly basis. Instead, the “TD,” as it is known, requires semi-annual reports and early disclosure of any material information that could affect financial results. The directive also allows national regulators to sanction companies if they do not issue information on “a timely basis.” In other words, it puts the onus on companies to report material information at an appropriate time.
