Worldwide: Governance & Securities Law Focus: Europe Edition, July 2017

In this newsletter, we provide a snapshot of the principal European, US and selected international governance and securities law developments of interest to European corporates.

EU Developments

General European Commission Publishes Guidelines for Reporting of Non-Financial Information

On 26 June 2017, the European Commission (the "Commission"), published guidelines on the methodology to be adopted by certain large companies and groups when reporting non-financial information under Directive 2014/95/EU amending the Accounting Directive. The Commission's intention is to improve the quality, relevance, usefulness, consistency and comparability of companies' non-financial information in a way that creates greater market transparency for stakeholders and so fosters growth. The guidelines are based around key principles, which include the guidance that disclosure must:

European Commission Mid-Term Review of the Capital Markets Union Action Plan

On 8 June 2017, the Commission published its mid-term review of the 2015 Capital Markets Union ("CMU") action plan. The review states that approximately two-thirds of the actions anticipated by the plan have been delivered since its inception. The Commission is now reframing the action plan in response to the results of the recent consultation (which it launched in January 2017 and which was covered in the April 2017 edition of this newsletter) and to other challenges in the market, including the UK's anticipated departure from the single market. The Commission has identified a number of new priority actions, which are:

  • to strengthen the powers of ESMA;
  • to deliver a more proportionate regulatory system for small and medium sized enterprises listing on public markets;
  • to strengthen the EU's leading role in pioneering sustainable investment;
  • to support cross-border investment; and
  • to support the development of local capital market ecosystems. These actions are additional to those already identified still outstanding in the action plan.
  • The responses to the Commission's consultation, which fed into the mid-term review, identified a number of specific challenges faced by the CMU, including:
  • the requirement for more risk finance to support the innovation and growth of start-up and scale-up firms;
  • the small size of public equity and debt markets in some member states relative to other developed economies;
  • the relative cost and complexity of accessing public markets, especially for small and medium sized companies;
  • a general contraction on the amount of new lending to EU business by EU banks since the financial crisis;
  • inadequate investment by insurance companies and pension funds in risk capital, equity and infrastructure;
  • low engagement on the part of retail investors with capital markets; and
  • long-standing obstacles preventing EU cross-border investment. In the Commission's view, it will have made sufficient progress on achieving these measures so as to lay the foundations for a true CMU by 2019. The full text of the Commission's review is available at:

ESMA: Updated Q&A on the Market Abuse Regulation ("MAR")

On 30 May 2017, the European Securities and Markets Authority ("ESMA") published an updated version of its Q&A on MAR. Changes since the last version include:

  • A new question on whether credit institutions are required under MAR to systematically publish the results of their Pillar II assessment in relation to the disclosure of inside information.
  • Confirmation that circumstances surrounding delay of disclosure under Article 17(4) or notification of delay under Article 17(5) will need to be assessed on a case-by-case basis by the relevant issuer.
  • In the context of the Supervisory Review and Evaluation Process to be conducted in accordance with Article 97 of Directive 2013/36/EU, whenever a credit institution subject to the market abuse regime becomes aware of information, notably as a result of a Pillar II assessment, it must evaluate whether such information constitutes inside information; if it does, then MAR provisions apply to the consequential disclosure requirements, and the credit institution must publicly disclose the inside information as early as possible, subject to the MAR provisions on delaying disclosure.
  • A reminder that if any publication, which does not come from the issuer complying with its disclosure obligations, or a rumour in the market, relates explicitly to inside information, the issuer must react and respond to the publication or rumour if it is accurate enough to indicate that the confidentiality of the inside information can no longer be assured. This response should be made publicly available in the same way as communication of inside information and without delay.
  • A new question on whether blanket order cancellation policies issued upon the discovery of a person being in possession of inside information is compliant with the ban on insider dealing under MAR. ESMA's response notes that there is a rebuttable presumption under Article 8(1) of MAR that "the use of inside information by cancelling or amending an order placed before the person concerned possessed inside information" constitutes insider dealing. However, if the cancellation was done without the use of inside information then this will not constitute insider dealing. Whether or not this is the case must be assessed on a case by case basis. The full text of the Q&A is available at:

To view the full article please click here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.