Faced with the coronavirus epidemic that is panicking the financial markets, the European Securities and Markets Authority (ESMA) published a series of recommendations on Thursday 12 March.
It is asking issuers to disclose as soon as possible any relevant significant information concerning the impacts of the coronavirus on their financial situation, in accordance with their transparency obligations under the Market Abuse Regulation.
Individual issuers should provide transparency on the “actual and potential impacts” of the coronavirus, based on a “qualitative and quantitative assessment of their business activities, financial situation and economic performance” in their 2019 year-end financial report, if not yet finalised, or in their interim financial disclosures, it says.
ESMA also calls on market participants to be prepared to implement their contingency plans, including the deployment of business continuity measures for their operational activities. For their part, it is imperative that asset managers continue to apply risk management requirements and respond accordingly, it adds.
ESMA ensures that it is closely monitoring developments in financial markets and that it is “prepared to use its powers to ensure the orderly functioning of markets, financial stability and investor protection”. (Original version in French by Marion Fontana)