The European Securities and Markets Authority (“ESMA“), together will National Competent Authorities (“NCAs“), has made the following recommendation to financial market participants to account for the impact of Covid-19:
- participants should be ready to apply their contingency plans, including deployment of business continuity measures, to ensure operational continuity in line with regulatory obligations;
- 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;
- 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; and
- asset managers should continue to apply the requirements on risk management, and react accordingly.
ESMA has said it is prepared to use its powers to ensure the orderly functioning of markets, financial stability and investor protection.