July 2007

Response to the European Commission's third consultation document on fostering an appropriate regime for shareholders' rights.

The Exchange has responded to the European Commission's consultation on a possible Recommendation for fostering an appropriate regime for shareholders’ rights. Such a Recommendation would supplement the recently adopted Directive.

We support the Commission’s efforts to promote shareholders’ rights. However, we believe that some of the measures outlined in the consultation may not need to be addressed at the EU level, but should instead be left to the market to develop best practice or should be left to private contractual arrangements.

In particular, we believe that stock lending is an area best left to contractual arrangements or best practice, based on principles-based codes developed by the industry. In the UK, the Securities Lending Code of Guidance produced by the Securities Lending and Repo Committee (SLRC) already works extremely well, and could be used as a model to be adopted across Europe.

Downloads
Response to the Shareholders Rights Document (file pdf - 193 KB)