Arrangements for submission of Audited Financial Statements and Annual Compliance Returns in response to Covid-19
As referred to in our update of 30 March, the Authority has reviewed the requirements for financial and regulatory returns in the light of the Covid-19 pandemic. The Authority will continue to keep a watching brief and monitor the situation to identify whether other regulatory requirements may require a different approach.
Audited Financial Statements, other Audit Confirmations, and Annual Compliance Returns
The Authority is mindful that, for some regulated entities, the current situation has led to unavoidable delays in finalising Audited Financial Statements and potentially other Audit Confirmations (for example audit management letters). This is particularly the case for regulated entities whose normal deadline for submission is four months after the financial year end. Accordingly, the table below shows where the Authority will allow some flexibility for those regulated entities where their audit has been affected by Covid-19 related issues. For regulated entities whose normal deadline for submission is six months after the financial year end, no changes apply.
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Normal deadline for submission of Audited Financial Statements |
New deadline for submission of Audited Financial Statements |
Other returns to be submitted with the Audited Financial Statements |
|
Four months after the financial year end |
Where it is not possible to complete the audit due to Covid-19 issues, regulated entities can submit up to six months after the regulated entity’s financial year end |
If the audited financial statements (or audit confirmations) are delayed, only submit this information alongside the audited financial statements (within 6 months). If fully complete prior to the usual four month deadline, and the audited financial statements are not delayed, submit all information as normal. |
|
Six months after the financial year end |
No change |
No change |
Regulated entities are encouraged to submit information to us (in one pack) before the extended deadlines, where possible. If the extended deadlines cannot be met, we ask that you engage with the Authority in a timely manner; there is no requirement to notify us in advance that you are partaking of the extended deadline.
If a regulated entity fails to meet the six month deadline, this will be treated as a breach in the normal way.
Quarterly Financial Resource Returns – annual audited expenditure figure
Certain regulated entities are required to submit quarterly Financial Resources Returns (FRRs).
Where a delay to the audit means a regulated entity does not have a new annual audited expenditure figure for inclusion in a quarterly FRR, the regulated entity should use the last audited expenditure figure from the previous financial year end. If a regulated entity’s expected new annual expenditure figure (unaudited) would result in its financial position falling below or within 110% of any of the minimum regulatory requirements, the FRR using the previous audited figure should be accompanied by a notification explaining the situation.
Other Requirements
The regulatory requirements applicable to regulated entities continue to apply.