Cyprus As Home Member State Under The Transparency Directive - Common Pitfalls In Cross-Border Reporting Requirements

Introduction

Directive 2004/109/EC on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market (Transparency Directive) regulates periodic financial reporting, major shareholding disclosures and the provision of information to investors in relation to issuers with securities traded on regulated markets of Member States of the EU or EEA (Member States).

Cypriot companies are frequently used in cross-border structures, whereby securities of a Cypriot company are listed on a regulated market of another Member State (Cypriot Issuer). This article provides an overview of the obligations of holders of listed securities of such Cypriot Issuers (Holders) and other persons subject to the notification requirements which are commonly overlooked, and sets out certain key circumstances under which Holders with 'major holdings' in a Cypriot Issuer, and sometimes also Cypriot Issuers