The Directive 2004/109/EC aims to streamline transparency requirements for issuers whose securities are traded on regulated markets within the European Union. By enhancing disclosure obligations, the Directive seeks to foster confidence among investors by ensuring timely and accurate information about an issuer's financial health and business activities. This is expected to augment investor protection and market efficiency, while also aligning national laws across Member States to facilitate a more integrated and competitive financial market.

Particular emphasis is placed on the roles of home and host Member States, defining their obligations regarding the supervision of information disclosure. Issuers are expected to publish annual and half-yearly financial reports, and to notify changes in significant shareholdings. The Directive also promotes the use of electronic means for disseminating information, thereby improving access for all investors.