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ESMA consults on short-termism in financial markets

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

03 Jul 2019

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

Part of the consultation is 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" contains 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 wants 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 questionnaire and an explanatory note, on the ESMA website. Responses to the survey are invited by 29 July 2019.

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