On the 14th March 2022, the European Securities and Markets Authority (ESMA) published a statement on the war in Ukraine, in particular in relation to the regulatory response to the ongoing events and their impact on the EU’s financial markets.
ESMA is coordinating with national competent authorities and is closely monitoring the impact of the Ukraine crisis on financial markets and has stated that it is prepared to use its relevant tools to ensure the orderly functioning of markets, financial stability and investor protection.
Insofar as issuers of listed instruments are concerned, ESMA is recommending the following:
- Market disclosure: issuers should disclose as soon as possible any inside information concerning the impacts of the crisis in Ukraine on their fundamentals, prospects and financial situation in line with their transparency obligations under the Market Abuse Regulation, unless the conditions for a delayed disclosure are met; and
- Financial reporting: issuers should provide transparency, to the extent possible, on both a qualitative and quantitative basis, on the actual and foreseeable direct and indirect impact of the crisis on their business activities, exposures to the affected markets, supply chains, financial situation and economic performance in their 2021 year-end financial report if these have not yet been finalised and in the annual general meeting or otherwise in their interim financial reporting disclosures.
This, in turn, ties in with the correspondence sent by the Malta Financial Services Authority as Maltese national competent authority to Maltese issuers since the start of the crisis.
For any further information on the crisis in Ukraine and how this affects an issuer’s reporting and disclosure requirements in terms of the Market Abuse Regulation and other applicable legislation, please do not hesitate to get in touch.