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ESMA Recommends Contingency Measures for EU Market Participants

Following an examination of COVID-19's impact on the financial markets in the European Union, the European Securities and Markets Authority ("ESMA") recommended specific contingency measures.

ESMA advised market participants to:

  • implement business continuity plans that ensure operational continuity, and help the firm meet its regulatory obligations;

  • disclose any relevant significant information relating to the impact of COVID-19 on its financial situation and its ability to comply with transparency requirements under the Market Abuse Regulation;

  • maintain transparency when reporting on the impact of COVID-19 by conducting both a qualitative and quantitative assessment on its (i) business activities, (ii) financial situation, and (iii) economic performance in its 2019 year-end financial reports; and

  • continue to enforce compliance with risk management requirements.

Primary Sources

  1. ESMA Statement: ESMA recommends action by financial market participants for COVID-19 impact

Tags

Regulated Activities
Business Continuity Risk Management
Sub-Activity
Coronavirus
Regulated Entities
Broker-Dealers
Body of Law
Securities Law
Jurisdiction
European Union or Non-U.S. Country
Organization
Non-U.S. Regulators