EU flags waving in front of European Parliament building. Brussels, Belgium

European regulators are calling on issuers to disclose the expected impact of the Covid-19 outbreak on their businesses.

The European Securities and Markets Authority (ESMA) said that issuers should disclose “any relevant significant information” about the effects of the outbreak on “their fundamentals, prospects or financial situation.”

It also said that the actual and potential impacts of the outbreak should be disclosed in issuers’ financial reports, including qualitative and quantitative assessments of the pandemic on firms’ businesses, financial situation and economic performance.

Additionally, ESMA called on all financial market participants, including infrastructure firms, to be ready to enact their business continuity plans.

ESMA declared that it’s prepared to use its powers “to ensure the orderly functioning of markets, financial stability and investor protection.”