SEC, PSE ease

rules amid
virus
March 17, 2020 | 12:06 am

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By Denise A. Valdez, Reporter

CORPORATE regulator Securities and Exchange Commission (SEC)
and local bourse operator Philippine Stock Exchange, Inc. (PSE) are
easing rules and requirements to adjust to mitigation efforts against
the coronavirus disease 2019 (COVID-19).

The SEC approved a memorandum circular last week extending the

deadline for disclosure of annual reports for publicly listed companies

until June 30.

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The new deadline applies to companies that have domestic operations

only. For those that also have foreign operations, companies may
submit until June 30, or 60 days from the date of lifting of travel
restrictions, whichever comes later.

The ling period for quarterly reports will also adjust.

However, companies that are not affected by the COVID-19 in the

preparation of nancial statements “are required to le their annual
reports and/or (audited nancial statements) for the year ended 31
December 2019 within the periods prescribed under the existing
rules and regulations.”

SEC Chairperson Emilio B. Aquino said the measure is to

accommodate companies that are challenged to comply with
requirements because of the virus outbreak.

“For one, the travel restrictions, suspension of business operations

and other measures implemented to contain the spread of COVID-19
have kept companies, particularly those with operations in China and
other affected territories, from gathering all information or
documents necessary in the preparation and the subsequent audit of
their annual nancial statements,” he said in a statement.

In the event that the given period is still not enough, companies may
request for an extension through a written letter to the SEC at least
ve days before the deadline.

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“The SEC will continue to assess the impact of COVID-19 on the

preparation of nancial statements and on the completion of the
statutory audits of companies. It may issue appropriate rules and
regulations to address the concerns that may further arise,” it said.

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The PSE issued a similar memorandum yesterday echoing the decision

of the SEC. But it noted that despite this, companies must
continuously disclose other material information on a timely basis.

In a separate announcement, the PSE adjusted the cut-off for

corporate disclosures at the Electronic Disclosure Generation
Technology (EDGE) platform. Companies must now disclose material
transactions by 1:30 p.m. Anything later than this will be posted on
the EDGE portal the following day.
This early deadline will be in place until April 14, in line with the
shortened trading hours at the stock market that started yesterday.
From today until April 14, the market will open at 9 a.m. and close at 1
p.m., “consistent with the COVID-19 preventive measures
implemented by the government.”

The Bankers Association of the Philippines (BAP) is likewise cutting

its foreign exchange hours due to the government’s community
quarantine in Metro Manila. Starting today until further notice, BAP
foreign exchange markets will be open at 9 a.m. to 12 p.m. in the
morning and 1 p.m. to 2 p.m. in the afternoon.

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