The uncertainties, disruptions and dynamic circumstances created
by the COVID-19 pandemic present numerous corporate reporting
challenges. The Securities and Exchange Commission (SEC) recognizes
the burdens companies face in meeting reporting requirements under
these circumstances and has taken steps to alleviate those burdens.
The SEC also reminds public reporting companies of the need to
assess potential impacts of the COVID-19 outbreak on their business
and operations, and to keep investors and markets informed of
material developments. SEC Chairman Jay Clayton has asked the
SEC’s staff to monitor issuers’ disclosures regarding the
current and potential impact of COVID-19.
The SEC’s advice should be heeded; doing so may protect
against costly securities-related litigation. These circumstances
highlight the need for issuers to focus on the following
disclosure-related areas.
