The Emerging Framework for Disclosure in the EU

Abstract

The EU is well advanced in (re-)shaping the regulatory structure for securities markets. As part of this exercise, the EU is rapidly finalising a more harmonised framework for disclosure in the prospectus, market abuse and transparency directives, and has created the structure for harmonised financial reporting with the International Accounting Standards regulation. This paper critically evaluates the new framework, make recommendations and signals problems that may be expected with its implementation. In particular is raises question regarding the degree of harmonisation in the different directives, the items included in the harmonisation exercise, and the supervisory structure.