SEC grants more time for public company disclosures

The Securities and Exchange Commission has extended the relief window for public company disclosures as part of its response to the coronavirus pandemic.

The SEC said Wednesday it is providing companies impacted by the virus up to 45 additional days to file disclosures due March 1 to July 1, including quarterly reports. The SEC order supersedes the agency's original "conditional" regulatory relief published March 4 for company disclosures due March 1 to April 30.

Issuers who delay their disclosures must provide a brief description of the reasons why; the estimated date by which the report, schedule or form is expected to be filed; and a company specific risk factor or factors explaining the impact, if material, of COVID-19 on its business, among other requirements, according to the SEC order.

The SEC said it intends to monitor the current situation and may, if necessary, extend the time period during which this relief applies.

The SEC also said that registrants are exempt from Exchange Act requirements concerning furnishing proxy statements, annual reports and other soliciting materials if two criteria are met: the security holder has a mailing address located in an area "where, as a result of COVID-19, the common carrier has suspended delivery service of the type or class customarily used," and the registrant has made "a good faith effort" to furnish the materials to the security holder.

"The health and safety of all participants in the securities markets is of paramount importance, and the commission recognizes that public companies and other market participants continue to face challenges in meeting the reporting and proxy delivery requirements of the federal securities laws in a timely manner," the SEC order said.