UNICE Rejects Plans For Single Corporate Governance Code

by Ulrika Lomas, for LawAndTax-News.com, Brussels

21 April 2004

In a letter sent to the chairman of the Committee of European Securities Regulators (CESR) earlier this month, the Union of Industrial and Employers' Confederations of Europe (UNICE) expressed strong opposition to corporate governance proposals put forward by the Committee's Consultative Panel at its last meeting.

In a statement released following the meeting, the CESR panel recommended the establishment of "a common framework of principles, mandatory at European level and enforceable by competent authorities".

However, UNICE responded to this recommendation by arguing that:

"There is broad agreement that there is no need for a European code on corporate governance. It is our considered opinion that corporate governance systems will develop and progress in a natural way under pressure from the financial markets. This is already happening and national rules or guidelines are constantly adapting to a global regulatory environment."

The business association went on to remark that:

"Adding yet another layer of mandatory EU legislation as is foreseen by the Market Participants Consultative Panel has to be considered as over-regulation."

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