Who should not #stayhome? Inside Information!
While the world is getting used to the new normal of staying in our homes, the regulators remind listed issuers that inside information should be disclosed as
usual, no matter the situation. Moreover, the COVID-19 situation might exactly be the trigger for disclosure.
It seems inevitable that the epidemic will have significant effects on the economy, and it is already affecting financial instruments markets. Listed issuers should carefully consider what information they hold relating to this new situation that would be likely to have a significant effect on the price of financial instruments, and whether such information should be disclosed under the EU Market Abuse Regulation.
To only name a few most obvious candidates – COVID-19 outbreak could affect issuers’ business performance, key personnel, ongoing restructurings or pending
transactions, asset or portfolio value, business plans, expected earnings and losses, entries into new business, orders already placed, etc. The assessment criteria stay the same – information is only considered inside information, if:
- it is of a precise nature
- has not been made public
- relates, directly or indirectly, to the issuer or to one or more financial instruments
- it would be likely to have a significant effect on the prices of those financial instruments or on the price of related derivative financial instruments, if it were made public.
Issuers are reminded that timely preparation and assessment is of the essence, as inside information needs to be disclosed as soon as possible, and the regulators show no signs of leniency.
If you need any help with interpreting or meeting the requirements, please do not hesitate to contact us.
While we #stayhome, our advice can be sent your way.
Important links
- Market Abuse Regulation
- Statement of the Slovenian Securities Market Agency
- ESMA Recommendation
- Clarifications on the Market Abuse Regulation issued by the Slovenian Securities Market Agency
