European regulators will take it easy on fund managers, benchmark administrators and auditors that can’t meet looming regulatory reporting deadlines.
In a series of statements, the European Securities and Markets Authority (ESMA) acknowledged that efforts to prevent further spread of Covid-19 has created “significant challenges” for firms — including fund managers and auditors — in meeting reporting requirements, and for benchmark administrators and firms facing audit obligations.
“While recognizing the importance of periodic reports for timely and transparent disclosure, ESMA is of the view that the burdens on fund managers associated with the Covid-19 outbreak should be taken into account by [regulators],” it said in its statement on fund managers.
As a result, it called on local regulators to “not prioritize” supervisory action against fund managers for failing to meet reporting requirements, or against benchmark administrators and firms for not producing their external audits on time.
Separately, ESMA announced that it’s postponing compliance with certain trade transparency reporting requirements.
ESMA said that it will continue to consider measures to mitigate the impact of Covid-19 on audit and disclosure requirements, and that it’s “prepared to use its powers to ensure financial stability, orderly functioning of markets and investor protection.”