(Repeats story published on Saturday for wider distribution, no
changes to text)
* FCA wants announcements on delays as soon as Monday
* FCA and other regulators to announce further measures
By Huw Jones
LONDON, March 21 (Reuters) - Companies should not publish
preliminary financial statements for at least two weeks to
better assess how the coronavirus epidemic is affecting their
business, Britain's Financial Conduct Authority said on
Saturday.
"The FCA will be writing tonight to companies it is aware
were intending to publish preliminary financial statements in
the next few days to delay their planned publications," the
watchdog said in a statement.
The watchdog said it wants them to announce delays to
statements as soon as Monday and will come forward with further
measures.
"The FCA strongly requests all listed companies observe a
moratorium on the publication of preliminary financial
statements for at least two weeks."
The practice of issuing preliminary financial statements
earlier than required is adding unnecessarily to the pressure on
auditors and listed companies, it said.
The FCA, the Financial Reporting Council, which regulates
auditors, and the Prudential Regulation Authority, the Bank of
England arm that regulates banks, will soon announce details of
a package to ensure that listed companies take time to prepare
appropriate disclosures, the watchdog said.
Stocks markets have already tumbled as investors dump shares
in companies they expect to be badly hit by the virus after the
government told shops, restaurants and other public places to
shut, and advised people to avoid all non-essential travel.
Britain said on Friday it will pay a massive share of
private sector wage bills to discourage bosses from firing staff
as it resorts to war-time levels of borrowing to prop up the
economy during its coronavirus shutdown.
The FCA's interim chief executive Christopher Woolard told
companies in a letter on Saturday that they should look to
announce delays in statements as soon as Monday.
"I would be grateful if you could give this request urgent
consideration, discuss with your board if appropriate, and
indicate today or tomorrow whether you will delay publication,"
Woolard said in his letter.
"Please could you also indicate if you intend to announce
delay on Monday morning," Woolard wrote.
Markets rely on trustworthy information for trading shares
in companies, but the basis on which companies are reporting and
planning is changing rapidly as the epidemic evolves and more
time was needed to make appropriate disclosures, the FCA said,
"Observing timetables set before this crisis arose may not
give companies the necessary time to do this," the FCA said.
Many companies opt to issue preliminary statements to update
markets in advance of disclosures that have been checked by
outside auditors. The main requirement is to publish full
audited financial statements within four months of the end of
their financial year.
(Reporting by Huw Jones; Editing by Chris Reese and Daniel
Wallis)
