Deal Reached on ESAP to Provide Investor Access to EU Data

Deal Reached on ESAP to Provide Investor Access to EU Data

By Prathamesh 29 May, 2023
news

This week the European Parliament and Council negotiators agreed on the timeline and processes for establishing the European single access point (ESAP), a common data platform that will merge digital data crucial for capital markets, financial services, and sustainable finance from across Europe.

The ESAP initiative was initially proposed by the EU Commission in early 2021, promising to provide a free single point of access for information on EU listed companies, investment products and sustainability information by 2024. Until this announcement, Europe has missed out on the ability to easily access filings from across the continent in one place – a critical function offered in the US via EDGAR and in Japan through EDINET. Investment within the EU, as well as in-bound investment into the EU is constrained today by the complexity associated with finding relevant information.

The latest decision from the European Parliament and Council, subject to legislative approval, sets the timeline for ESAP’s introduction at 42 months after the legislation comes into force – so, meaning it is likely to be fully operational no earlier than the summer of 2027.

The deal this week also expanded the remit of ESAP to make available information that EU businesses voluntarily disclose, alongside mandatory filings. Information provided voluntarily would have to be uniform in format and comparable in substance, value, use and reliability to that submitted on a mandatory basis. Additionally, the scope of ESAP has been expanded to include information on crypto assets, green bonds, and the activities of institutions for occupational retirement provision.

ESAP will not create any new reporting requirements, rather, it will collate the information reported under existing disclosure arrangements – such as the Corporate Sustainability Reporting Directive (CSRD) – in a useful, accessible, free of charge platform.

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