Global securities regulators are consulting on a new updated set of recommendations for secondary market disclosure — but left a sustainability-related recommendation out at the insistence of U.S. regulators.
Following its latest round of meetings in Madrid, the International Organization of Securities Commissions (IOSCO) published a consultation on listed issuer disclosure that aims to revise and modernize its existing principles in this area, which were originally issued in 2002. It also incorporated other disclosure-related policies that have been adopted by IOSCO over the years and consolidated them into a single document.
“The recommendations seek to address issues regarding duplication, gaps in coverage and outdated references while providing more clarity and precision where necessary,” IOSCO said in the paper.
However, one area that’s not covered in the main consultation paper is sustainability-related disclosure.
Instead, that is contained in a separate addendum to the main paper, at the behest of the U.S. Securities and Exchange Commission (SEC) and U.S. Commodity Futures Trading Commission (CFTC), which IOSCO said “objected to the inclusion of this recommendation in the primary set of recommendations.”
Despite the U.S. regulators’ newfound opposition to standards for sustainability-related disclosure, the addendum noted that investors “are increasingly interested in sustainability-related risks and opportunities and questions regarding the long-term viability and business resilience of a business.”
And so, for jurisdictions that are developing or revising their requirements in this area, the global regulators set out out recommendations for these kinds of disclosures that may include climate-related disclosures, but also other environmental, social, and governance issues.
“Listed entities may need to consider enhancing the connectivity between financial performance and sustainability-related matters through their disclosures,” it said — including both retrospective and forward-looking disclosures.
The main consultation, which sets out a principles-based approach to secondary market disclosure and aims to provide best practices for regulators in developing disclosure requirements, is out for comment until Feb. 3, 2026.
Its proposals cover both periodic (annual and quarterly) disclosure by issuers and disclosure that’s driven by events that impact the company. It also provides guidance on ensuring accountability for disclosure and setting internal controls.