On 31 March 2021, the European Securities and Markets Authority (ESMA) issued a statement concerning the application of transparency requirements by UK issuers with securities admitted to trading on regulated markets in the EU under Article 4 of the Transparency Directive (TD). ESMA is issuing the statement to promote common supervisory practices among Member State competent authorities when exempting UK issuers from their TD requirements.

The statement highlights that, from 1 January 2021, UK issuers may use the International Financial Reporting Standards, as endorsed by the EU, or as issued by the International Accounting Standards Board, amongst other accounting standards, when complying with their TD obligations for consolidated financial statements and individual financial statements of single entities. UK group issuers may also use UK GAAP when complying with their obligations for parent individual financial statements. In particular, when providing information on dividends computation and, where applicable, minimum capital requirements.