This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Responses to the ESMA consultation on short-termism in financial markets

  • ESMA (European Securities and Markets Authority) (dark gray) Image

09 Sep 2019

In July 2019, the European Securities and Markets Authority (ESMA) launched a consultation that aimed to gather evidence on potential short-term pressures on corporations stemming from the financial sector. The individual responses to the consultation are now available.

Part of the consultation was a questionnaire intended to support ESMA’s analysis of potential sources of undue short-termism 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.

Section IV of the questionnaire "The role of fair value in better investment decision-making" contained questions on whether and how fair value may impact the capacity of financial reporting to provide relevant and reliable information on equity instruments held for long-term investment purposes. With these questions ESMA wanted to assess how the measurement and disclosure of fair value may impact the selection of a short-or long-term horizon.

Please click to access the press release, which offers access to the responses to the questionnaire, on the ESMA website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.