Regulators request delay in corporate reporting
24 Mar 2020
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.