Fleischer H, Schmolke KU (2011)
Publication Language: English
Publication Type: Journal article, Report
Publication year: 2011
Publisher: Cambridge University Press (CUP)
Pages Range: 121 - 145
Journal Issue: 12
DOI: 10.1017/S156675291110004X
Open Access Link: http://journals.cambridge.org/action/displayFulltext?type=1&fid=8243690&jid=EBR&volumeId=12&issueId=01&aid=8243689
The reform of the Transparency Directive is presently on the political agenda, with
one of the key questions focusing on the level of harmonisation: should the current
minimum harmonisation be retained or is a move towards full harmonisation
advisable? After confirming legal competence for the full harmonisation of European
capital markets law, this article weighs the pros and cons of full harmonisation in
the case of ownership disclosure rules. The ability to overcome the costly legal
fragmentation of the current regulatory regime for notification of major shareholdings
throughout Europe is revealed as the greatest benefit of full harmonisation. As
full harmonisation not only reduces compliance costs but also boosts investor
confidence, all market participants stand to benefit. Despite this, full harmonisation
also carries certain costs as it inhibits regulatory competition, increases complexity
in implementing EU law in national legal systems and carries the danger of a
petrification effect. The article reveals that these cost factors are not sufficient to
undermine the case for full harmonisation for financial instruments requiring
notification, as well as for thresholds, timeframes and notification formats. It goes on
to show that legal regimes can retain their adaptive efficiency by allowing them to
conduct temporary legislative experiments. However, the article refrains from
generalising this finding, encouraging a targeted full harmonisation approach for
the Transparency Directive.
APA:
Fleischer, H., & Schmolke, K.U. (2011). The Reform of the Transparency Directive. Minimum or Full Harmonisation of Ownership Disclosure? European Business Organization Law Review, 12, 121 - 145. https://doi.org/10.1017/S156675291110004X
MLA:
Fleischer, Holger, and Klaus Ulrich Schmolke. "The Reform of the Transparency Directive. Minimum or Full Harmonisation of Ownership Disclosure?" European Business Organization Law Review 12 (2011): 121 - 145.
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