CySEC is relevant authority for new transparency law

With the aim of strengthening transparency, effectiveness and development of the capital market, embedding confidence and better protection for the investors, the House of Parliament voted recently a Law on the Transparency Requirements. The Law, which applies to issuers whose securities are listed for trading on a regulated market (stock exchange), intends to harmonise the Cyprus legislation with the European Directive of 2004/109/EC and partly with the directive 2007/14/EC for Market Transparency.

The legislation determines the securities issuers certain obligations for timely and regular announcement of precise and brief information regarding business performance and assets of the issuers.  The obligations concern the annual financial report, the half-yearly and quarterly financial reports as well as the profit warning announcement.

In addition, the shareholders’ (natural or legal entities) obligations are regulated in terms of informing the issuers and the Cyprus Securities and Exchange Commission regarding changes (acquisition or disposal of shares) on significant holdings of the listed companies so that the issuers inform, on time, the public.

There are provisions in the law which govern the announcement and safe-guarding of the regulated information in an Officially Appointed Mechanism (OAM) so that the timely and non-biased access by the public to the said information is ensured.