23 March 2020

The Financial Conduct Authority has said it “strongly requests” all listed companies due to publish financial statements in the next few days delay their publication for at least two weeks. Letters will be sent to all companies it is aware were intending to publish statements.

It said the unprecedented events of the past few weeks mean the basis on which companies report and plan is changing rapidly. Investors “rely on trustworthy information” and companies need time to consider events when preparing disclosures. “Observing timetables set before this crisis arose may not give companies the necessary time to do this.”

Both companies and auditors are also facing “unprecedented practical challenges” and preparing preliminary financial statements would add unnecessary pressure.

While issuing such financial statements is common for UK-listed companies, it is not officially required either by Listed Rules or the Transparency Directive. Companies are required to publish full audited financial statements within four months of the financial year end.

The FCA, Financial Reporting Council and the Prudential Regulation Authority are in talks about measures to give companies time to prepare appropriate disclosures despite current practical challenges. “The three bodies intend to announce details shortly.”

The Sunday Telegraph has suggested deadlines for private company accounts may also be loosened by 30 or 60 days, and audits could potentially be revisited at a later date.

Pointedly, the FCA has reminded companies the Market Abuse Regulation remains in full force. “Listed companies are still required to announce inside information… as soon as possible.”

Tags: FCA, FRC, PRA