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1 1 (April 16, 2020)

handle is hein.crs/govcvyv0001 and id is 1 raw text is: Researh Sevice Securities and Exchange Commission (SEC) Actions to Mitigate the Impact of COVID-19 April 16, 2020 The U.S. Securities and Exchange Commission (SEC) has broad regulatory authority over significant parts of the securities industry, including stock exchanges, mutual funds, investment advisers, bonds, publicly traded companies, and brokerage firms. The coronavirus (COVID-19) pandemic has affected various areas within the SEC's regulatory ambit. This Insight highlights selected tools that the agency has used to help mitigate those impacts. Disclosure Relief A foundational goal of federal securities laws is protecting investors, an objective significantly addressed through required periodic disclosure of information by SEC-registered market participants and publicly traded companies. On March 25, 2020, the SEC issued guidance to publicly traded companies on the potential implications of COVID-19 for their periodic mandatory SEC disclosures. The guidance indicated the agency was continuing to monitor how companies are reporting the impact of COVID-1 9, including the challenges of accurately forecasting the virus's likely effect on both their industry and themselves. Nonetheless, it noted that it considered developments pertaining to COVID-19 to be material information that warranted disclosure and that companies were obligated to address such business risks despite their uncertain and evolving nature. The aforementioned periodic public company disclosures are subject to certain SEC filing deadlines, which could be disrupted by COVID-19. In response to such concerns, on March 4, 2020, the SEC gave conditional regulatory relief to publicly traded companies for their mandatory disclosure reporting, including Forms 10-K and 10-Q, annual and quarterly disclosures. Such filings were due between March 1 and April 30. Under the relief, firms have an additional 45 days to file. Mitigating Market Volatility or Market Disruptions In March 2020, the COVID-19 outbreak helped end the longest bull stock market in U.S. history, ushering in a period of exceptional market volatility that has involved significant stock selloffs. Depending on the severity of an intraday decline in the broad S&P 500 stock index (7%, 13%, or 20%), the SEC-sanctioned Congressional Research Service https://crsreports.congress.gov IN11339 CRS NStGHT Prepaimed for Mernbei-s and Committees 4 o. C- --q .. . . . . . . . ...-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

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