Companies should not share market sensitive information with external analysts ahead of financial statements, the European Union’s securities watchdog said on Wednesday.
The European Securities and Markets Authority (ESMA) said that companies should be aware of EU laws for preventing market abuses when holding “pre-close calls” with analysts.
These refer to communications, before the publication of financial statements, between a company and analysts who generate research, forecasts and recommendations on company shares and bonds.
ESMA noted recent media reports suggesting a connection between episodes of high volatility in share prices and ‘pre-close calls’.
“Consequently, issuers should only share non-inside information during these ‘pre-close calls’,” ESMA said in a statement.
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