The European Securities and Markets Authority (ESMA), together with National Competent Authorities (NCAs) closely monitor the situation in view of the continuing impact of the COVID-19 outbreak on financial markets in the European Union (EU).
On 11 March 2020 ESMA made the following recommendations to financial market participants:
- Business Continuity Planning – All financial market participants should be ready to apply their contingency plans, including deployment of business continuity measures, to ensure operational continuity in line with regulatory obligations;
- Market disclosure – issuers should disclose as soon as possible any relevant significant information concerning the impacts of COVID-19 on their fundamentals, prospects or financial situation in accordance with their transparency obligations under the Market Abuse Regulation;
- Financial Reporting – issuers should provide transparency on the actual and potential impacts of COVID-19, to the extent possible based on both a qualitative and quantitative assessment on their business activities, financial situation and economic performance in their 2019 year-end financial report (if these have not yet been finalised or otherwise in their interim financial reporting disclosures); and
- Fund Management – asset managers should continue to apply the requirements on risk management, and react accordingly.