The Financial Conduct Authority (FCA) has asked all listed companies to delay the release of their full-year results by at least a fortnight, as the coronavirus crisis rages on.
The regulator said that the unprecedented developments of recent weeks meant that the basis on which organisations are reporting and planning is changing rapidly. Sticking to their original schedules might not give them enough time to factor in such change. “Investors in capital markets rely on trustworthy information on the companies whose instruments they trade”.
In its missive – sent on 21 March 2020 – the FCA also noted that Plcs and their auditors are facing practical problems during the coronavirus outbreak. The watchdog believes that putting out preliminary financial statements ahead of the fully audited numbers – something that is common practice, but not required – is exacerbating the existing pressure on companies and their accountants.
The FCA is in talks with the Financial Reporting Council and the Prudential Regulation Authority. The three institutions plan to announce details of measures aimed at making sure that companies take sufficient time in uncertain circumstances to address challenges and prepare appropriate disclosures.
On Monday 23 March – the first business day after this news from the FCA – several entities revealed that they would not be going ahead with their full-year updates as planned. This is wholly understandable – shareholders want to make decisions based on up-to-date, relevant facts and figures. It remains to be seen whether the regulator will extend its initial two-week moratorium request.
