SEC Seeks To Delay Implementation Of Accelerated Filing

by Glen Shapiro, LawAndTax-News.com, New York

31 August 2004

The US Securities and Exchange Commission (SEC) announced on Thursday that it is seeking to delay by one year a requirement which would oblige listed companies to increase the speed at which they file quarterly and annual reports with the regulator.

Currently, firms must file their annual reports within 75 days of the end of the year, and their quarterly reports within 40 days of the end of the quarter in question. Following several high profile corporate governance scandals, the Commission unveiled plans to reduce the filing period to 60 days after the end of the fiscal year for annual reports, and 35 days after the quarter ends for quarterly reports.

However, the SEC revealed last week that in response to concerns expressed by public firms and their auditors that they would not be able to meet the new more stringent internal control requirements at the same time as increasing the speed at which they file reports, the start date of the accelerated filing initiative has been postponed for one year.

However, the body went on to warn that:

"We are not suggesting in any way that the proposed one-year postponement should cause companies and auditors to slow their efforts to comply."

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