FCA Confirms a 1-year Delay on ESEF Implementation
The United Kingdom's Financial Conduct Authority (FCA) published on Thursday a Policy Statement stating its decision to push back implementation of the European Single Electronic Format (ESEF) requirements by 1 year.
ESEF is the electronic reporting format in which issuers on EU regulated markets shall prepare their annual financial reports. Specifically, implementation of ESEF requirements means issuers must publish and file their entire annual financial report in XHTML web browser format and with tagging of basic financial information in ESEF machine-readable format.
Results of FCA's open consultation previously shows whilst it was supportive overall of a delay on ESEF implementation, a significant minority of respondents, particularly those who are assisting issuers in implementing ESEF, opposed a delay.
The UK regulator re-emphasises that it supports ESEF and that any issuer who is ready, and who wants to, will be able to publish and file their annual financial reports in ESEF voluntarily with the FCA's National Storage Mechanism from January 2021. FCA encourages those issuers who are able to do this from next year, to do so.
The watchdog also explained in the statement that it decided to delay ESEF implementation because the balance of responses was supportive of the proposal to delay. Additionally, larger issuers who responded indicate that ESEF implementation is a significant challenge for them in the current circumstances. This is also supported by the accounting and consulting firms who responded. Moreover, recent evidence from a survey of issuers carried out by the Financial Reporting Council (FRC) indicates that many issuers are at a low stage of preparation.
Subscribe Now
