FCA tells firms to delay forthcoming announcement of preliminary financial accounts

Maria Nikolova

The regulator explains that the events of the last couple of weeks mean that the basis on which companies are reporting and planning is changing rapidly.

The UK Financial Conduct Authority (FCA) has written to companies it is aware were intending to publish preliminary financial statements in the next few days asking them to delay their planned publications.

The regulator strongly requests all listed companies observe a moratorium on the publication of preliminary financial statements for at least two weeks.

The FCA explains that investors in capital markets need trustworthy information on the companies whose instruments they trade. The unprecedented events of the last couple of weeks mean that the basis on which companies are reporting and planning is changing rapidly. It is important that due consideration is given by companies to these events in preparing their disclosures. Observing timetables set before this crisis arose may not give companies the necessary time to do this.

Furthermore, listed companies and the audit profession are facing numerous practical challenges during the coronavirus crisis. The FCA believes the practice of issuing preliminary financial statements in advance of the full audited financial statements is adding unnecessarily to the pressure on companies and the audit profession at this moment.

The FCA notes the requirement is that companies publish full audited financial statements within four months of the financial year end.

The regulator says it is in talks with the Financial Reporting Council and the PRA about a package of measures aimed at ensuring companies take the necessary time to prepare appropriate disclosures and address current practical challenges. The three bodies intend to announce details shortly.

The FCA reminds companies that the Market Abuse Regulation remains in full force and listed companies are still required to announce inside information to the market as soon as possible unless a valid reason to delay disclosure under the regulation exists.

This statement does not apply to AIM companies.

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