Audio Transcript

On 31 March 2021, the European Securities and Markets Authority (ESMA) issued a statement regarding the application of transparency requirements by UK-based issuers with securities admitted to trading on EU-regulated markets under Article 4 Transparency Directive.

ESMA stated to promote standard supervisory practices among Member State competent authorities when exempting UK issuers from their TD requirements. The statement highlights that from 1 January 2021, UK issuers can use the International Financial Reporting Standards, as endorsed by the EU, or as issued by the International Accounting Standards Board, 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 separate financial statements. In particular, when providing information on dividends computation and, where applicable, minimum capital requirements.