Regulators
request delay in corporate reporting
Financial
regulators have requested a moratorium on corporate financial reports for at
least two weeks.
The Financial
Conduct Authority (FCA) is in talks with the Financial Reporting Council (FRC)
and the Prudential Regulation Authority (PRA) about a package of measures to
reinforce trust in the reporting system.
These will be
aimed at ensuring companies and their auditors take the necessary time to
prepare appropriate disclosures and address current practical challenges.
The FCA says
that it is vital that investors can rely on trustworthy information from
companies.
However, the FCA
added that the unprecedented events of the last couple of weeks mean that the
basis on which companies are reporting and planning is changing rapidly.
Consequently,
the regulators say companies must give due consideration to the fast-moving
coronavirus crisis, and previous timetables may not give them necessary time to
do this.
In a statement,
the FRC said it ‘encourages listed companies and their auditors to consider
carefully whether they should delay other corporate reports for the next two
weeks, such as interim financial statements and final audited financial statements,
except where necessary to meet a legal or regulatory requirement’.
The three
regulators confirmed they are discussing a package of measures and expect to
announce details soon.