ESMA · ESMA_QA_1880 Answer Published

Application of the scope exemption; Paragraph 19 of the APM Guidelines.

Regulation
Transparency Directive (TD) Directive 2004/109/EC
Topic
Alternative Performance Measures (APM)
Submitted
2017-10-30
Answered
2017-10-30
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Question

In which circumstances is the scope exemption in paragraph 19 (4th bullet) of the APM Guidelines applicable (i.e. issuers are not required to apply the APM Guidelines when APMs are used to explain the compliance with the terms of an agreement or legislative requirement such as lending covenants or the basis of calculating the director or executive remuneration)?

Answer

[ESMA32-51-370 APM Q14] The exception in paragraph 19 of the APM Guidelines (4 th bullet) is only applicable when an issuer uses APMs solely to explain compliance with terms of an agreement or legislative requirement. If issuers use simultaneously an APM to explain the compliance of terms of agreement or legislative requirement and to provide information on/describe its performance in a given period, this APM is within the scope of the APM Guidelines.
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