In an April 8 joint statement, the SEC’s Chairman and Director of Corporate Finance addressed the importance of providing the public with information to make market decisions in coming earnings releases and investor calls.
On April 3, the SEC’s Chief Accountant issued a statement emphasizing the importance to all market stakeholders of high-quality financial reporting during this period of heightened economic uncertainty.
On March 25, 2020, Corp Fin issued “CF Disclosure Guidance: Topic No. 9” to provide guidance on disclosure of the effects of COVID-19.
On March 25, 2020, the SEC released a modified exemptive order, which extends the period during which a 45-day grace period will be available for certain filings.
As the scope of the effects of the Novel Coronavirus (COVID-19) comes into focus, corporate boards have a vital role in overseeing the response of their companies to this public health crisis and its wide-ranging economic effects.
On March 4, the SEC issued an order that temporarily exempts companies affected by COVID-19 from certain filing requirements, including requirements to file periodic reports, annual reports and proxy statements.
In addition to extending filing deadlines for affected companies, the regulator has asked its employees to work from home, postponed a conference on municipal securities and cancelled a public vote on a (subsequently adopted) proposal to ease audit requirements for smaller companies.
On March 12, the SEC adopted amendments to the “accelerated filer” and “large accelerated filer” definitions in Exchange Act Rule 12b-2 that will have the primary effect of exempting smaller companies from the requirement to obtain an attestation of their internal control over financial reporting (ICFR) from an independent outside auditor.
On March 4, 2020, the SEC proposed amendments to the exempt offering framework with the aims of reducing regulatory complexity, facilitating capital formation and expanding investment opportunities.
Virtual shareholder meetings continue to rise in popularity, with interest recently reaching fever pitch due to concerns surrounding COVID-19.