ESMA clarifies corporate disclosures obligations for UK issuers after Brexit


The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published a statement concerning the application of transparency requirements by UK issuers with securities admitted to trading on regulated markets in the European Union (EU), now third country issuers, under the Transparency Directive (TD).

The aim of the statement is to ensure a common supervisory approach by all National Competent Authorities (NCAs) concerning the application of the accounting frameworks used by UK issuers, in relation to consolidated and individual financial statements of single and group entities.

The statement highlights that, from 1 January 2021, UK issuers may use the International Financial Reporting Standards (IFRS), as endorsed by the EU, or as issued by the International Accounting Standards Board (IASB), amongst other accounting standards, when complying with their TD obligations for consolidated financial statements and individual financial statements of single entities.

UK group issuers may also use UK GAAP when complying with their obligations for parent individual financial statements. In particular, when providing information on dividends computation and, where applicable, minimum capital requirements.

NCAs, under the TD, may exempt UK issuers from the application of EU law provided that third country law sets out equivalent requirements. As UK issuers are no longer subject to EU law, the accounting frameworks used by UK issuers when publishing their financial reports in accordance with the TD should be vetted by NCAs.

NCAs will monitor the compliance of UK issuers with this statement.


Further information:

Dan Nacu-Manole

Communications Officer

   +33 (0)1 58 36 52 06


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