The FCA wants businesses to hold off publishing their financial statements because of the coronavirus

March 23, 2020

Many financial services firms have been gearing up to publish their financial statements. But now the UK’s financial markets watchdog tells them to wait for at least two weeks.

As the world is heading further into the crisis caused by COVID-19, businesses in a wide range of sectors have been urged to take measures to cushion the impact of the virus.

Challenger banks have already set up routines to protect both their clients and employees, regulators have told insurance companies to take special care of their clients during these trying times, and businesses have been warned to be extra vigilant against cybersecurity threats.

Now, the Financial Conduct Authority (FCA) has requested that businesses wait to release their forthcoming announcement of preliminary financial accounts.

The regulator has written to companies it was aware were intending to publish preliminary financial statements in the next few days to delay their planned publications.

It has asked all listed companies to observe a moratorium on the publication of preliminary financial statements for at least two weeks.

It said that the reason for the decision was to protect investors in capital markets who rely on trustworthy information on the companies whose instruments they trade.

However, the growing pandemic is constantly changing the circumstances businesses operate in.

By delaying the publication of these announcements, the FCA hopes that businesses will have time to businesses will be able to adjust and give due consideration to how the coronavirus will affect their businesses.

“Observing timetables set before this crisis arose may not give companies the necessary time to do this,” the FCA wrote.

“In addition, listed companies and the audit profession are facing unprecedented 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.”