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ad hoc Disclosure

Ad hoc Disclosures play a central role in the financial world and are an indispensable tool for maintaining market transparency and integrity. This article highlights the importance, legal framework and practical challenges of Ad hoc Disclosures and provides an overview of when and where to find them.

Ad Hoc Disclosure Definition: What is an ad hoc Disclosure?

An Ad hoc Disclosure is a short-term and immediate publication of material information by listed companies that could potentially have a significant impact on the share price. These announcements serve to ensure transparency on the financial markets and to inform all market participants simultaneously and comprehensively in order to prevent insider trading and unfair market practices.

The most important features of an Ad hoc Disclosure are:

  1. Material information: The notification must contain information that is of significant importance for the valuation of the share, such as unexpected profit warnings, mergers, takeovers or personnel changes in management.
  2. Immediacy: As soon as the company becomes aware of relevant information, it must be published immediately, i.e. without undue delay.
  3. Public dissemination: The information must be made available to the public in a way that ensures that it reaches all market participants as simultaneously and completely as possible. This is usually done via specialized information services and the company's own website.
  4. Legal basis: In many countries, the publication of ad hoc announcements is regulated by law. In the European Union, for example, these requirements are enshrined in the Market Abuse Regulation (MAR).

Ad hoc Disclosures are therefore an essential tool to protect the integrity and efficiency of the financial markets and to ensure investor confidence.

Key Differences of ad hoc Disclosure, ad hoc Message and ad hoc Report

This table outlines the key differences and contexts for ad hoc disclosure, ad hoc messages, and ad hoc reports.

Aspect Ad hoc Disclosure Ad hoc Message Ad hoc Report
Definition Mandatory, immediate, and public disclosure of significant, price-sensitive information by publicly traded companies. Any impromptu or one-off communication created for a specific purpose or in response to a particular event. A custom report generated to address a specific issue or query, often on an as-needed basis.
Purpose Ensures compliance with financial regulations and market transparency. General communication for any specific purpose or event. Provides detailed information tailored to specific needs or questions, often for internal use.
Context Primarily used in the context of financial markets and regulatory compliance. Can be used in any context where specific, one-off communication is needed. Commonly used in business and IT for specific, detailed information needs.
Regulatory Requirement Yes, typically mandated by financial regulatory authorities. No, not necessarily governed by regulations. No, usually not subject to regulatory requirements.
Examples Immediate disclosure of earnings reports, Announcements of mergers or acquisitions, Profit warnings or significant changes in financial forecasts Communication about a sudden change in company policy, Message to stakeholders regarding an unexpected event, Urgent internal communication about a system outage Custom sales report for a specific quarter, Detailed analysis report for a particular business issue, Custom IT performance report generated for troubleshooting

Ad hoc Disclosure: Significance for the Financial World

Ad hoc Disclosures are of central importance to the financial world for several reasons:

  1. Transparency and trust: Ad hoc disclosures contribute significantly to transparency in the financial markets. By publishing material information immediately, companies create confidence among investors and other market participants. Transparency prevents certain groups of investors from receiving preferential treatment and thus promotes a fair and transparent market.
  2. Investor protection: By publishing price-sensitive information without delay, all investors receive the same information at the same time. This protects investors from unequal distribution of information and reduces the risk of insider trading, where some market participants could gain an advantage from confidential information.
  3. Market integrity: Ad hoc disclosures ensure the integrity of the financial markets. They prevent market manipulation and ensure that the prices of securities reflect the actual economic situation of companies. This increases the efficiency of the markets, as prices are based on complete and accurate information.
  4. Regulatory requirements: In many countries, ad hoc disclosures are required by law. For example, in the European Union through the Market Abuse Regulation (MAR). Compliance with these regulations is mandatory for listed companies in order to avoid legal consequences and possible penalties.
  5. Information efficiency: Ad hoc disclosures ensure that important information is disseminated quickly and efficiently. This enables investors to make informed decisions based on up-to-date and comprehensive information.
  6. Reputation and Corporate Management: Companies that publish ad hoc disclosures consistently and correctly can strengthen their reputation. Good Corporate Management (Corporate Governance) includes compliance with disclosure requirements and contributes to the positive perception of the company.

Examples of price-sensitive information that could be contained in Ad hoc Disclosures:

  • Unexpected profit warnings or increases
  • Mergers, acquisitions or significant partnerships
  • Changes in senior management or board members
  • Significant changes in business strategy
  • Important legal disputes or regulatory developments

Overall, Ad hoc Disclosures are an indispensable tool for the functioning and stability of the financial markets by ensuring transparency, fairness and integrity.

Important terms relating to
ad hoc disclosures explained

Important terms relating to the ad hoc Disclosures

Ad hoc Disclosures A short-term and immediate publication of material information by listed companies that can significantly influence the share price.
Insider Information Information of a precise nature which has not been made public and which, if it were made public, would be likely to have a significant effect on the price of a financial instrument.
Market Abuse Regulation (MAR) A European Union regulation that contains provisions to prevent insider trading and market manipulation and regulates the obligations to publish insider information.
Transparency The principle that all material information must be publicly accessible and equally available to all market participants.
Price Relevance The ability of information to significantly influence the price of a security.
Insider Trading The purchase or sale of securities by persons who, due to their position in the company, have access to non-public, price-sensitive information.
Disclosure Obligation The legal obligation of a company to make certain information available to the public.
Issuer A company or organization that issues securities, such as stocks or bonds.
Financial Communication The way in which a company communicates financial information to the public and investors.
Compliance The adherence to laws, policies and regulations that apply to a company.
Price-sensitive Events Events or developments that can significantly affect a company's share price, such as mergers, acquisitions, profit warnings or significant contract signings.
Confidentiality The obligation to keep inside information secret prior to its official publication in order to prevent insider trading.
Securities Regulator Authorities or organizations that monitor compliance with securities trading regulations and laws, such as BaFin in Germany or the SEC in the USA.
Press Release An official statement issued by a company through media channels to publicly announce important information.
Capital Market The market in which capital is traded in the form of stocks, bonds and other securities.
Corporate Governance The framework of rules, practices and processes by which a company is managed and controlled, including disclosure requirements.

These concepts form the basis for understanding Ad hoc Disclosures and their significance for the financial markets.

Procedure for ad hoc Disclosures

Ad hoc Disclosures follow a structured process to ensure that material information is disclosed promptly and accurately. Here is an overview of the typical steps:

  1. Recognition of relevant information:
    • The company identifies information or an event that could potentially have a significant impact on the share price. This can be done by various internal departments such as management, the legal department or the investor relations department.
  2. Evaluation of share price relevance:
    • The information is checked for its relevance to the share price. This involves assessing whether the information could have a significant impact on the share price. This assessment is often carried out by the management in cooperation with the legal department and, if necessary, external advisors.
  3. Preparation of the announcement:
    • A formal ad hoc disclosures is prepared. This must be precise, clear and complete and contain all material information. Care is taken to ensure that no misleading or incomplete information is published.
  4. Internal coordination:
    • The prepared communication is coordinated internally and approved by the responsible managers and the legal department. This may also require the approval of the Management Board or other decision-makers.
  5. Publication of the announcement:
    • The ad hoc disclosures are published through appropriate channels to ensure that they reach all market participants at the same time. Typically, publication takes place via:
      • Stock exchange information systems
      • Company website
      • Specialized information services and media
      • Press releases
  6. Documentation and archiving:
    • The published press release is documented and archived. This is important for compliance with legal and regulatory requirements and allows for later review or audits.
  7. Follow-up and communication:
    • After publication, the market is monitored for reactions. The company is available to answer questions from analysts, investors and the media promptly and accurately.

This process ensures that ad hoc disclosures are communicated quickly and correctly to all relevant market participants in order to ensure transparency and fairness on the financial markets.

Where can I find ad hoc Disclosures?

Ad hoc Disclosures are important instruments of financial market communication and must therefore be published in an easily accessible and timely manner. Here are the most important points where you can find ad hoc disclosures.

Overview of the places where you can find Ad hoc Disclosures

The following diagram shows an overview of the places where you can find Ad hoc Disclosures.

Explanation: The places where you can find Ad hoc Disclosures

Ad hoc disclosures are indispensable sources of information for investors and market participants. They are published immediately and are accessible through a variety of channels, including stock exchange information systems, company websites, press releases, financial news services, regulatory platforms and financial portals. This variety of sources ensures that all market participants are informed simultaneously and comprehensively.

Financial News Services

  • Financial news services such as Bloomberg, Reuters, and other specialized services often publish ad hoc disclosures immediately after they are announced.
  • These platforms often provide real-time notifications and comprehensive archives.

Regulatory Platforms

  • In some countries, there are special regulatory platforms on which ad hoc disclosures must be published. In Germany, for example, this is the Federal Gazette.

Financial Portals and Apps

  • Large financial portals such as Yahoo Finance, Google Finance or special stock exchange apps and websites such as finanzen.net or onvista.de often offer up-to-date ad hoc disclosures and can be used as additional sources.

Advantages & Disadvantages
of Ad hoc Disclosures

Ad hoc disclosures: Advantages and disadvantages

Aspect Advantages Disadvantages
Transparency Increases the transparency of the financial markets, as all relevant information is publicly accessible. Can lead to information overload if too many or insignificant announcements are published.
Investor protection Protects investors from insider trading by informing all market participants at the same time. Rapid publication can lead to incomplete or misleading information.
Market integrity Strengthens the integrity and fairness of markets by creating a level playing field. Incorrect disclosures can undermine confidence in the company and the market.
Price relevance Enables investors to make informed decisions based on current and complete information. Short-term price movements due to announcements can lead to increased volatility.
Compliance Helps companies meet legal requirements and avoid legal consequences. High administrative effort and costs for preparation and publication.
Reputation Can strengthen a company's reputation by being perceived as transparent and trustworthy. Negative information must also be published, which can damage the company's image.

This table provides an overview of the main advantages and disadvantages of Ad hoc disclosures in the context of the financial markets.

Legal basis for Ad hoc Disclosures

Ad hoc disclosures are subject to specific legal regulations in many countries to ensure that material information is published promptly and transparently. Here are some of the most important legal bases concerning Ad hoc Disclosures:

Legal basis for Ad hoc Disclosures in different Countries & Regions

Here are some of the most important legal bases concerning Ad hoc Disclosures:

European Union Market Abuse Regulation (MAR) Regulation (EU) No 596/2014 on market abuse regulates the publication of inside information and ad hoc disclosures in the EU. Article 17 of the MAR obliges issuers to publish inside information immediately in order to prevent market manipulation and insider trading.
Germany Securities Trading Act (WpHG) In Germany, the Securities Trading Act regulates the obligations to publish insider information. § Section 15 WpHG (now replaced by MAR) specifies the requirements for Ad hoc Disclosures and the obligations of issuers.
BaFin circulars The German Federal Financial Supervisory Authority (BaFin) regularly issues circulars explaining the application of MAR and other regulations relating to Ad hoc Disclosures.
United States Securities Exchange Act of 1934 In the USA, the Securities Exchange Act of 1934 regulates the disclosure requirements for listed companies. In particular, Regulation FD (Fair Disclosure) requires that material information be disclosed to all investors at the same time.
United Kingdom Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rules The FCA implements the requirements of MAR in the United Kingdom and sets out specific guidelines for the publication of Ad hoc Disclosures.
Switzerland Financial Market Infrastructure Act (FMIA) In Switzerland, the Financial Market Infrastructure Act and the associated ordinance regulate the obligations to publish insider information for listed companies.

Consequences of Violations

Breaches of the ad hoc publicity obligation can have serious consequences, including

  • Fines and penalties by regulatory authorities.
  • Civil lawsuits from investors.
  • Damage to reputation and trust in the company.
  • Possible criminal consequences for responsible persons.

The duty of ad hoc publicity is therefore a key element of market integrity and investor protection by ensuring that all market participants are equally informed and have access to reliable information.

Form and content of the Ad hoc Disclosures

The form and content of an ad hoc disclosure are clearly regulated to ensure that the information is precise, understandable and accessible to all market participants at the same time. Here are the main requirements:

Content of the ad hoc Disclosures

  1. Headline:
    • A concise and meaningful headline that summarizes the essential event or information.
  2. Introduction:
    • A short paragraph that summarizes the most important message.
  3. Body:
    • Description of the event or information: A detailed description of what has happened or is being announced. This should include all material facts relevant to the evaluation of the information.
    • Background information: Context and background that makes the event or information more understandable.
    • Impact: An assessment of the potential impact on the company and its financial position.
  4. Contact Information:
    • Details of contact persons for queries, usually the Investor Relations department or an appropriate contact person.
  5. Disclaimer and Legal Information:
    • If necessary, legal notices or disclaimers, especially in connection with forward-looking statements.

Ad hoc disclosures must be precise, comprehensible and comprehensive in order to meet the requirements of transparency and fairness on the financial markets. It should contain all relevant information that could influence the share price and be published immediately to ensure that all market participants are informed at the same time.

Ad hoc Disclosures Example

The following is a fictitious example of an Ad hoc Disclosures.

Headline “ABC AG announces profit warning for the 2024 financial year”
Introduction ABC AG announces that it is revising its profit forecast for the 2024 financial year downwards due to unexpected market conditions.
Main Part  
Description of the event or information ABC AG has reduced its original forecast of an annual profit of EUR 100 million to EUR 60 million. This adjustment is due to a significant decline in demand in the main markets and rising raw material prices.
Background information ABC AG had seen strong demand in the first quarter of 2024, but a combination of global economic uncertainties and unexpected market changes led to a slump in orders in the second and third quarters.
Impact The company expects these market conditions to continue into the fourth quarter, which will continue to impact margins and overall profitability.
Contact Information For further information, please contact: Jane Doe, Head of Investor Relations Phone: +49 123 456 789 Email: investor.relations@abcag.com
Disclaimer and legal notice This release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied by such forward-looking statements.

Misuse of Ad hoc Disclosures

The misuse of Ad hoc disclosures by marketing communications is a serious problem, as it can jeopardize the integrity and transparency of financial markets. Here are the main aspects and consequences of this abuse, as well as measures to prevent and regulate it:

Main aspects of the misuse of Ad hoc Disclosures

  • Misleading information:
    • Companies might use Ad hoc disclosures to publish positive but non-material information to artificially influence the share price. This can mislead investors and lead to uninformed decisions.
  • Exaggerated announcements:
    • Exaggerating or unduly emphasizing certain information that in reality has no significant impact on the company or its share price.
  • Delaying negative information:
    • Withholding or delaying the release of negative information while emphasizing positive news to portray the company in a better light.

Measures to prevent & regulate the misuse of Ad hoc Disclosures

  • Strict regulations:
    • Regulatory authorities enforce strict rules that govern the publication of ad hoc disclosures. These include the Market Abuse Regulation (MAR) in the EU and Regulation FD (Fair Disclosure) in the USA.
  • Monitoring and enforcement:
    • Regulatory authorities actively monitor the publication of ad hoc disclosures and take action in the event of violations. This can include investigations, sanctions and publicity measures.
  • Internal controls and compliance:
    • Companies must implement internal control mechanisms and compliance programs to ensure that ad hoc disclosures are published correctly and in accordance with regulatory requirements.
  • Training and awareness:
    • Training for employees and managers on the importance and requirements of ad hoc disclosures can prevent misuse. A culture of transparency and integrity should be promoted.

Consequences of misuse of Ad hoc Disclosures

  • Legal and regulatory consequences:
    • Companies and responsible persons can be prosecuted and subject to substantial fines. Regulatory authorities such as BaFin in Germany or the SEC in the USA monitor compliance with ad hoc regulations.
  • Loss of confidence:
    • The misuse of Ad hoc disclosures can lead to a loss of confidence among investors and market participants, damaging the share price and reputation of the company in the long term.
  • Market manipulation:
    • Misuse of Ad hoc disclosures can be considered a form of market manipulation, which can lead to significant legal consequences.

Examples & case studies of misuse of Ad hoc Disclosures

  • Exaggerated profit forecasts:
    • A company might publish exaggerated earnings forecasts to drive up its share price, only to issue a profit warning later when actual results do not meet expectations.
  • Delayed negative news:
    • A company might withhold negative news, such as legal problems or poor financial results, and emphasize smaller positive news instead.

The misuse of ad hoc disclosures through marketing communications poses a serious threat to the integrity of the financial markets. Strict regulation, active monitoring by regulators, internal controls and training are key measures to prevent and regulate this abuse. Companies must ensure that they fulfill their ad hoc disclosure obligations correctly to ensure investor confidence and market fairness.


Where can I find ad hoc disclosures?

Ad hoc announcements can be found on the official websites of companies in the Investor Relations section or press releases, via stock exchange information systems such as Xetra, on regulatory platforms such as the Federal Gazette in Germany, as well as on financial news services such as Bloomberg and Reuters. Large financial portals and specialized financial apps also often provide access to the latest ad hoc announcements.

What is the publication of the ad hoc disclosures intended to prevent?

The publication of ad hoc disclosures is intended to prevent certain market participants from gaining an information advantage, which should prevent insider trading and market manipulation. Publication is also intended to ensure that all investors have access to key information at the same time, which promotes transparency and fairness on the financial markets.

What is an ad hoc disclosures?

An ad hoc disclosure is a short-term and immediate publication of material information by listed companies that can have a significant impact on the share price. These announcements are intended to ensure that all market participants have access to important information at the same time, in order to guarantee transparency and fairness on the financial markets and prevent insider trading.

What is the full meaning of ad hoc employees?

Ad hoc employees are people who are hired on a short-term and often temporary basis for specific tasks or projects in order to fulfill special, usually urgent requirements. Their employment is usually limited in time and geared to the specific needs of the company, without any long-term commitment or obligation.

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