ESMA recommends action by financial institutions because of COVID-19
The European Securities and Markets Authority (ESMA) and National Competent Authorities (NCAs) are monitoring the situation in view of the impact of the COVID-19 outbreak on financial markets in the European Union.
ESMA prepared recommendations to financial market participants for the risk. First of all, according to the ESMA, all financial market participants, including infrastructures should be ready to apply their contingency plans, including deployment of business continuity measures, should 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 also 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 or otherwise in their interim financial reporting disclosures. And asset managers should continue to apply the requirements on risk management.
ESMA, in coordination with NCAs, continues to monitor developments in financial markets as a result of the COVID-19 situation and is prepared to use its powers to ensure the orderly functioning of markets, financial stability and investor protection.