On 29 October 2015, the European Parliament adopted a Regulation on Transparency of Securities Financing Transactions as proposed by the European Commission. By means of securities financing transactions, securities may be lent for purposes of financing and revenues or sold with a buyback obligation. The new Regulation aims to improve the transparency of such transactions by introducing reporting obligations to central databases known as trade repositories and by introducing fund documentations disclosing obligations for UCITS and AIF or respectively for their manager. Finally, the Regulation introduces certain transparency conditions that should be met on the reuse of the securities, such as risk disclosure and the need to grant prior consent.
Following the Parliament's vote and publication in the Official Journal of the EU, the Regulation will gradually come into force from mid-2016.