ESMA statement on good practices in relation to pre-close calls between an issuer and analysts

On 29 May 2024, ESMA published a statement in relation “pre-close calls” and good practices, which issuers should pay particular attention when engaging in such calls.

“Pre-close calls” are communication sessions between an issuer and an analyst or group of analysts who generate research, forecasts, and recommendations related to the issuer’s financial instruments for their clients. These “pre-close calls” usually take place immediately before the periods preceding an interim or a year-end financial report during which issuers refrain from providing any additional information or updates. “Pre-close calls” can influence market expectations and instrument prices.

ESMA considers that “pre-close calls” carry inherent risks of inadvertent unlawful disclosure of inside information increased by the lack of publicity of these events and the absence of records of what was presented.

Issuers are reminded about the prohibition of unlawful disclosure of inside information and that public disclosure of inside information should take place in accordance with Article 17 of the Market Abuse Regulation and Commission Implementing Regulation (EU) 2016/10552.