U.S. – SEC Importance Of Disclosure, Covid

U.S. – SEC Importance Of Disclosure, Covid

On 8 April 2020, SEC detailed disclosures key for markets, in Covid.

  • Chair Clayton statement on importance of disclosure, fight against pandemic, facilitate engagement to mitigate economic contraction, evolve strategies, address challenges.

Firm Disclosures

  • Respond to investor interest firm's currrent operational, financial status.
  • Response to Covid, progress to protect health, well-being of workforce, clients, how ops, financial condition may change as fight continues; future conditions, resources.
  • High-quality disclosure to benefit investor, firms but also enhance key communication, coordination across economy, between public, private sectors as Covid fight pursued.
  • Transparency to foster confidence in all stakeholders, firms encouraged to respond to call for forward-looking disclosure, avail of safe-harbors for such statements.
  • Note good faith attempts to provide properly framed forward-info not be 2nd-guessed.


  • SEC actions focused on market integrity, function, guidance, relief, investor interests.
  • Broad support from constituents for mitigating step taken despite huge economic cost.
  • Recognition of need for transition to forward-looking, health, welfare strategies.
  • In light of highly integrated economy, challenges but combine dramatic health-focused mitigation efforts with monetary, fiscal intervention evolve over long term, corrections.
  • Framework for forward-looking health, welfare strategies to address Covid, develop more tools to fight it with increased testing, enhanced monitoring, data analysis, ID.
  • Accept effective therapeutics anchored by advice of healthcare specialist, tailor efforts.
  • Key to continue target fiscal assistance of CARES Act, efforts on workers, businesses constrained by health, safety directives, adjust operational norms to ensure safety.
  • Extensive coordination between public, private sectors essential for success in fight.
  • Nimble coordinated health, economic strategy to affect outcome, isolated effort to fail.

Q1 Earnings Reports

  • Statements, calls to come will not be routine, since historical projections not as great interest as forward plans, where firm is today, how they adjusted, expect to in future.
  • Challenges in producing detailed reports understood, SEC to be practicable, mindful.
  • Firms urged to disclose as much info as practicable on current status, plans to address Covid, operating capability, future operating plans, liquidity positions, financial needs.
  • Recognize challenge of forward-looking disclosure, believe taking on challenge is right.