As the world takes more extreme measures to try and curb the COVID-19 outbreak, the European Securities and Markets Authority (ESMA) has issued recommended actions for financial markets.
The advice, which was made with collaboration from national competent authorities (NCAs), suggests all financial market participants, including infrastructures, should be ready to apply contingency plans. This includes the deployment of business continuity measures, to ensure operational continuity in line with regulatory obligations.
It also recommends issuers should disclose any relevant significant information concerning the impacts of COVID-19 on their fundamentals or financial situation. Furthermore, issuers should supply transparency on the actual and potential of COVID-19 on their business activities, financial situation and economic performance.
Finally, the regulator has advised asset managers to continue to apply the requirements on risk management and act accordingly.
ESMA and NCAs will continue to monitor developments in financial markets as a result of COVID-19.
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