ARTICLE 14A AND 14B: ENFORCEMENT OF SRD II PROVISIONS

Abstract

Enforcement mechanisms purport to ensure the compliance with all transposed SRD II rules by enhancing the credibility of the long-term shareholder engagement and agenda that has been at the forefront of the Commission’s ambition. Safeguarding compliance in this area can also reinforce credibility in the markets, investor confidence and sound corporate governance, and investment management practices. Most importantly, the element of accountability of concerned persons who are supposed to fulfil the SRD II duties is of paramount importance now that the SRD II has been transposed into national laws. The aim of this chapter is to present the various types of enforcement mechanisms and to critically assess their adaptability and efficiency in relation to the areas of practice affected by the SRD II.