UK Regulator Asks Firms to Postpone Preliminary Reports Amid Pandemic Chaos

  • FCA asks companies to delay preliminary financial accounts publication due to COVID-19 disruptions
  • Companies urged to observe a moratorium on publishing preliminary financial figures for at least two weeks
  • FCA states that issuing preliminary financial statements adds pressure on companies and audit profession during the crisis

The Financial Conduct Authority (FCA) has requested companies set to release preliminary trading updates in the coming days to delay publication due to the ongoing disruptions caused by the coronavirus outbreak. The FCA advised all listed companies to observe a moratorium on publishing their preliminary financial figures for at least two weeks, stating that the current events may not allow sufficient time for proper consideration and disclosure preparation. It also mentioned the practical challenges faced by listed companies and the audit profession during the crisis. Many retailers like John Lewis, Selfridges, Calvin Klein, and Ikea have closed their stores following government advice. The FCA clarified that while preliminary financial statements are common among UK-listed firms, they are not required by Listing Rules or Transparency Directive, and companies must publish fully audited financial statements within four months of the financial year’s end.

Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about the FCA’s request for companies to delay publication of preliminary trading updates due to the coronavirus outbreak. It also mentions specific examples of retailers that have closed their stores as a result of government advice.
Noise Level: 3
Noise Justification: The article provides relevant information about the FCA’s request for companies to delay publication of preliminary trading updates due to the coronavirus outbreak and its impact on businesses. It also mentions specific examples of retailers that have closed their stores. However, it could provide more in-depth analysis or insights into how this decision may affect various industries and the overall economy.
Financial Relevance: Yes
Financial Markets Impacted: UK-listed companies and their share prices
Financial Rating Justification: The article discusses the impact of the coronavirus outbreak on the publication of preliminary trading updates by UK-listed companies, which can affect their financial disclosures and potentially impact financial markets and company shares.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk