TSCPA News

SEC Expands COVID-19 Relief

March 27, 2020

UPDATE: The SEC recently announced it is extending the filing periods covered by its previously enacted conditional reporting relief for certain public company filing obligations, and it is also extending regulatory relief previously provided to funds and investment advisers whose operations may be affected by COVID-19. Additionally, the SEC’s Division of Corporation Finance issued its current views regarding disclosure considerations and other securities law matters related to COVID-19.

The SEC issued an order that, subject to certain conditions, provides public companies with a 45-day extension to file certain disclosure reports that would otherwise have been due between March 1 and July 1, 2020. This supersedes and extends the original order of March 4, 2020. Among other conditions, companies must continue to convey why the relief is needed.

An order was also issued that would provide certain investment funds and investment advisers with additional time with respect to holding in-person board meetings and meeting certain filing and delivery requirements. This supersedes and extends the filing periods covered by the original orders of March 13, 2020. Among other conditions, entities must notify the Division staff and/or investors, as applicable, of the intent to rely on the relief, but generally no longer need to describe why they are relying on the order or estimate a date by which the required action will occur. 

The Division of Corporation Finance also issued Disclosure Guidance Topic No. 9, providing the staff’s current views regarding disclosure and other securities law obligations that companies should consider with respect to COVID-19 and related disruptions.

For more information, visit the SEC website.

March 6, 2020--The SEC issued an order this week stating public companies that experience difficulties with meeting SEC filing deadlines due to the coronavirus may qualify for an additional 45 days to file certain disclosure reports normally due between March 1 and April 30 if they meet certain conditions.

Among other conditions, companies must submit a report explaining why the relief is needed. The SEC stated it may extend the time period for relief or provide additional relief depending on the circumstances and encouraged companies to reach out with any questions.

Additionally, the SEC’s Division of Investment Management stated it will not recommend enforcement if fund boards are not able to meet in-person voting requirements due to effects of the coronavirus for board meetings scheduled through June 15.