ESMA finalises MAR guidelines on delayed disclosure
Timeliness is an important aspect in ensuring the utility and transparency of financial reporting – but in some cases, there may be valid reasons for companies to delay revealing inside information.
The European Securities and Markets Authority (ESMA) has clarified this issue for EU filers, with the publication of its Final Report on amendments to its Market Abuse Regulation (MAR) guidelines on delay in the disclosure of inside information and interactions with prudential supervision. These guidelines deal with MAR requirements in as far as they relate to listed financial institutions and their regulators.
Under MAR, issuers should normally publicly disclose any inside information that directly concerns them as soon as possible. However, they may choose to delay under certain conditions: where immediate disclosure is likely to prejudice an issuer’s legitimate interest, delay is not likely to mislead the public, and the issuer is able to ensure the confidentiality of the information.
The ESMA guidelines aim to provide clarity, enhance legal certainty and foster supervisory convergence in this area. The amendments, published as a consultation paper in July, provide additional information to help issuers determine whether they meet the conditions for delay. They clarify several specific points, Including on Supervisory Review and Evaluation Process (SREP) decisions and Pillar 2 Capital Requirements and Guidance. The updated guidelines will now take effect following their translation and publication in the full range of EU languages.
Read more here.
