SEC says companies impacted by coronavirus can delay earnings filings
SEC chairman Jay Clayton testifies during the House Financial Services Committee hearing, Oct. 4, 2017. Photo: Bill Clark/CQ Roll Call
The Securities and Exchange Commission said on Wednesday it would give coronavirus-impacted companies more time to file key financial documents — including quarterly reports — on a conditional basis.
Why it matters: It's among the first agencies to announce regulatory relief for corporations affected by the coronavirus outbreak.
- If granted an extension by the SEC, Wall Street may get details about whether the coronavirus hurt these companies' bottom lines — and by how much — later than usual.
Details: Companies that can show they need extra time because their operations have been impacted by the outbreak may get a 45-day extension to file regulatory documents.
- "Disruptions to transportation, and limited access to facilities, support staff, and professional advisors as a result of COVID-19, could hamper the efforts of public companies and other persons with filing obligations to meet their filing deadlines," the SEC notes.
What they're saying: The "situation may prevent certain [companies] from compiling these reports within required timeframes," SEC chairman Jay Clayton said in a press release.
- But Clayton warned companies "to provide investors with insight regarding their assessment of, and plans for addressing, material risks to their business" as a result of the coronavirus.