Interim management statements to be abolished next year


Removing the obligation to publish IMSs is designed to reduce the burden on listed companies, particularly smaller ones for whom the cost of publishing IMSs is likely to be disproportionate to the benefit to investors. IMSs have also been criticised for encouraging short-termism and unreliable financial reporting. Not all Member States will necessarily abolish the requirement for IMSs, however: the amended Directive allows Member States to continue to require IMSs if doing so (i) “does not constitute a disproportionate financial burden in the Member State concerned, in particular for small and medium-sized issuers”; and (ii) the information required to be included “is proportionate to the factors that contribute to investment decisions by the investors in the Member State concerned”. Some overseas legislation and stock exchanges may therefore continue to require issuers (particularly those with shares admitted to a “premium” market segment, or those of a certain size or operating in an industry of structural importance) to publish IMSs or something similar.

Click here for more details of these and other changes to the Transparency Directive.