ESMA published for consultation its draft guidelines on alternative performance measures ("APMs") on 13 February 2014, used by issuers in any of their public regulatory (e.g. financial) disclosures. These are aimed at ensuring that issuers who provide APMs do so in a way that is appropriate and useful for users' decision-making. The proposed guidelines are based primarily on, and will replace, the Committee of European Securities Regulator's ("CESR") Recommendation on Alternative Performance Measures, which has been in force since October 2005.
For the purposes of the guidelines, ESMA considers APMs to be any numerical measure of historical, current or future financial performance, which relates to the issuer's financial position, comprehensive income or cash flows, and which is not a measure defined by the applicable financial reporting framework. The proposed guidelines will apply to issuers whose securities are admitted to trading on a regulated market and national competent authorities. They will regulate APMs included in all issued documents containing regulated information that are made publicly available (e.g. financial statements). ESMA is seeking feedback on whether the guidelines should apply to APMs published in prospectuses and related documents, which departs from the position under the current CESR Recommendation.
Responses to the consultation are requested by 14 May 2014. ESMA expects to publish final guidelines in the fourth quarter of 2014.
The consultation paper is available at: http://www.esma.europa.eu/system/files/esma-2014-175_cp_on_the_draft_guidelines_on_apms.pdf
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
