ESMA consults on short-termism in financial markets


The European Securities and Markets Authority (ESMA) has today published a questionnaire which aims to gather evidence on potential short-term pressures on corporations stemming from the financial sector. 

Considering the impact of short-termism forms part of ESMA’s work on sustainable finance and relates to the European Commission’s Action Plan on ‘Financing Sustainable Growth’.

ESMA invites investors, issuers, UCITS management companies, self-managed UCITS investment companies, AIFMs and the trade associations of financial market participants to respond to the questionnaire. Responses will contribute to ESMA’s analysis of potential sources of undue short-termism on corporations with an aim to identifying areas in which existing rules may contribute to mitigating undue short-termism and areas where the rules may exacerbate short-term pressures.

By December 2019, ESMA will deliver a report to the European Commission based on its findings, in line with the Commission’s request to each of the three European Supervisory Authorities (ESAs). The report will present evidence and possibly advice on potential undue short-termism. The Commission will consider ways to follow up on the report’s findings, which may include policy actions.

The questionnaire will be open for five weeks, closing on 29 July 2019. It is presented in EUSurvey, an online survey making tool. Before responding to the questions, respondents are invited to read the explanatory note on the survey on short-termism which provides background information and definitions for each section of the questionnaire as well as useful technical instructions.

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