Progress: Procedure completed
Role | Committee | Rapporteur | Shadows |
---|---|---|---|
Lead | ECON | HUHNE Christopher ( ELDR) | |
Former Responsible Committee | ECON | HUHNE Christopher ( ELDR) | |
Former Committee Opinion | JURI | MEDINA ORTEGA Manuel ( PES) |
Lead committee dossier:
Legal Basis:
EC Treaty (after Amsterdam) EC 044, EC Treaty (after Amsterdam) EC 095
Legal Basis:
EC Treaty (after Amsterdam) EC 044, EC Treaty (after Amsterdam) EC 095Subjects
Events
The Commission presented a report on the exercise of the power to adopt delegated acts conferred on the Commission pursuant to Directive 2003/71/EC of the European Parliament and of the Council on the prospectus to be published when securities are offered to the public or admitted to trading and amending Directive 2001/34/EC.
Adopted in November 2003, the Prospectus Directive (PD) was amended in November 2010 by Directive 2010/73/EU ("PD II", in application from July 2012). It was last amended by Directive 2014/51/EU (the "Omnibus II" Directive). The PD II includes a review clause requiring the Commission to assess by 1 January 2016 the application of the PD as amended by PD II.
Delegation of power : the Prospectus Directive (PD) empowers the Commission to adopt delegated acts for a period of 4 years from 31 December 2010 . The Commission shall draw up a report in respect of the delegated power at the latest 6 months before the end of the four year period. The delegation of power shall be automatically extended for periods of an identical duration, unless the European Parliament or the Council revokes it.
Exercise of the delegation :
Article 1(4), Article 2(4), Article 3(4) of the PD : to date, an adjustment of the thresholds and definitions were not undertaken by the Commission. The definitions and thresholds will be assessed in the course of the review required by the PD II, by 1 January 2016.
Article 4(1) fifth subparagraph of the PD : to date, no requests for such assessments were made to specify the criteria for the equivalence of third-country regulatory frameworks. Furthermore, the equivalence assessment can be done directly. All equivalence provisions for third countries will be assessed in the course of the review required by Article 4 PD II, by 1 January 2016.
Article 5(5) and Article 7(1) of the PD : the Commission has used these empowerments to adopt the following three Commission Delegated Regulations :
Commission Delegated Regulation (EU) No 486/2012 amending Regulation (EC) No 809/2004 as regards the format and the content of the prospectus, the base prospectus, the summary and the final terms and as regards the disclosure requirements. Commission Delegated Regulation (EU) No 862/2012 amending Regulation (EC) No 809/2004 as regards information on the consent to use of the prospectus, information on underlying indexes and the requirement for a report prepared by independent accountants or auditors. Commission Delegated Regulation (EU) No 759/2013 amending Regulation (EC) No 809/2004 as regards the disclosure requirements for convertible and exchangeable debt securities.
Article 8(4) PD : this empowerment has not been used because discussions with the European Securities and Markets Authority (ESMA) and National Competent Authorities (NCAs) have not shown the need to further specify details about the omission of information from the prospectus.
Amendment of the "Omnibus II" Directive : the "Omnibus II" Directive amended the empowerment contained in Article 11(3), Article 13(7), Article 14(8) and Article 15(7) of the PD. The amended empowerment confers the power on ESMA to develop draft regulatory technical standards (RTS) to specify:
the approval of the prospectus and the conditions in accordance with which time limits may be adjusted; the provisions relating to the publication of the prospectus; the provisions concerning the dissemination of advertisements announcing the intention to offer securities to the public or the admission to trading on a regulated market, in particular before the prospectus has been made available to the public or before the opening of the subscription, and specify certain provisions.
ESMA is to submit these draft regulatory technical standards to the Commission, for adoption, by 1 July 2015 . The Commission is empowered to adopt the standards in question in accordance with Regulation in accordance with Regulation (EU) No 1095/2010 . ESMA undertook a public consultation on the draft RTS which closed on 19 December 2014.
Article 20(3) PD first subparagraph : to date, the Commission has not used the empowerment to adopt delegated acts establishing general equivalence criteria for third country prospectuses. The issue of general equivalence criteria for third country prospectuses will be assessed in the course of the review required by PD II, by 1 January 2016.
The Commission presents a staff working document on the state of play on convergence between International Financial Reporting Standards (IFRS) and third country national Generally Accepted Accounting Principles (GAAP).
According to the European Securities and Markets Authority (ESMA) report, the four countries that were found equivalent to IFRS on a temporary basis until 31 December 2011 (China, Canada, India, and South Korea) have taken further steps in pursuing their convergence or adoption. The document examines the actions undertaken by each country.
China has already substantially converged its accounting standards with IFRS and is committed to eliminating the remaining, residual, differences.
In India, the latest developments introduce uncertainty about the country’s commitment towards an IFRS-compliant financial reporting system. There is significant uncertainty as to whether India would adopt the IFRS or otherwise come up with a country-specific version with numerous modifications and carve-outs in some important areas, such as agriculture, financial instruments, negative goodwill, and real estate.
Other major economies have also recently announced their intention to adopt IFRS, such as Argentina, Brazil, Mexico, and Taiwan .
In Russia, there have been recent developments as far as the adoption of IFRS is concerned.
Commission services will continue to monitor the situation and assesses the efforts by third countries converging to IFRS or intending to adopt IFRS, with the technical assistance of ESMA.
Documents
- Follow-up document: COM(2015)0149
- Follow-up document: EUR-Lex
- Follow-up document: SEC(2011)0991
- Follow-up document: EUR-Lex
- Implementing legislative act: 32004R0809
- Implementing legislative act: OJ L 215 16.06.2004, p. 0003-0105
- Final act published in Official Journal: Directive 2003/71
- Final act published in Official Journal: OJ L 345 31.12.2003, p. 0064-0089
- Commission opinion on Parliament's position at 2nd reading: COM(2003)0432
- Commission opinion on Parliament's position at 2nd reading: EUR-Lex
- Text adopted by Parliament, 2nd reading: T5-0311/2003
- Text adopted by Parliament, 2nd reading: OJ C 074 24.03.2004, p. 0098-0251 E
- Decision by Parliament, 2nd reading: T5-0311/2003
- Debate in Parliament: Debate in Parliament
- Committee recommendation tabled for plenary, 2nd reading: A5-0218/2003
- Committee recommendation tabled for plenary, 2nd reading: A5-0218/2003
- Commission communication on Council's position: SEC(2003)0396
- Commission communication on Council's position: EUR-Lex
- Council position: 05390/4/2003
- Council position: OJ C 125 27.05.2003, p. 0021-0057
- Council position published: 05390/4/2003
- Council statement on its position: 07022/2003
- Modified legislative proposal: COM(2002)0460
- Modified legislative proposal: EUR-Lex
- Modified legislative proposal: OJ C 020 28.01.2003, p. 0122 E
- Modified legislative proposal published: COM(2002)0460
- Modified legislative proposal published: EUR-Lex
- Debate in Council: 2432
- Text adopted by Parliament, 1st reading/single reading: T5-0114/2002
- Text adopted by Parliament, 1st reading/single reading: OJ C 047 27.02.2003, p. 0417-0524 E
- Decision by Parliament, 1st reading: T5-0114/2002
- Debate in Parliament: Debate in Parliament
- Committee report tabled for plenary, 1st reading/single reading: A5-0072/2002
- Committee report tabled for plenary, 1st reading: A5-0072/2002
- Economic and Social Committee: opinion, report: CES0034/2002
- Economic and Social Committee: opinion, report: OJ C 080 03.04.2002, p. 0052
- Debate in Council: 2393
- Document attached to the procedure: OJ C 344 06.12.2001, p. 0004-0007
- Document attached to the procedure: BCE(2001)0036
- Legislative proposal: EUR-Lex
- Legislative proposal: OJ C 240 28.08.2001, p. 0272 E
- Legislative proposal: COM(2001)0280
- Legislative proposal published: EUR-Lex
- Legislative proposal published: COM(2001)0280
- Legislative proposal: EUR-Lex OJ C 240 28.08.2001, p. 0272 E COM(2001)0280
- Document attached to the procedure: OJ C 344 06.12.2001, p. 0004-0007 BCE(2001)0036
- Economic and Social Committee: opinion, report: CES0034/2002 OJ C 080 03.04.2002, p. 0052
- Committee report tabled for plenary, 1st reading/single reading: A5-0072/2002
- Text adopted by Parliament, 1st reading/single reading: T5-0114/2002 OJ C 047 27.02.2003, p. 0417-0524 E
- Modified legislative proposal: COM(2002)0460 EUR-Lex OJ C 020 28.01.2003, p. 0122 E
- Council statement on its position: 07022/2003
- Council position: 05390/4/2003 OJ C 125 27.05.2003, p. 0021-0057
- Commission communication on Council's position: SEC(2003)0396 EUR-Lex
- Committee recommendation tabled for plenary, 2nd reading: A5-0218/2003
- Text adopted by Parliament, 2nd reading: T5-0311/2003 OJ C 074 24.03.2004, p. 0098-0251 E
- Commission opinion on Parliament's position at 2nd reading: COM(2003)0432 EUR-Lex
- Implementing legislative act: 32004R0809 OJ L 215 16.06.2004, p. 0003-0105
- Follow-up document: SEC(2011)0991 EUR-Lex
- Follow-up document: COM(2015)0149 EUR-Lex
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