SEC extends string of relief measures for licensed and registered entities

In an effort to provide some relief to the stakeholders of the Colombo bourse, the Securities and Exchange Commission (SEC) said it would provide a series of measures that would assist the players in complying with certain mandatory regulatory requirements.

The SEC, in a directive to the Colombo Stock Exchange (CSE), said that the relief measures are extended so that the licensed and registered entities are able to comply with the regulatory requirements, amidst the constraints and administrative challenges brought about by the COVID-19 pandemic.

The first measure provided is to grant a deadline extension for the licensed/registered entities to submit the financial reports to the SEC.

The due date for submission of the unaudited financial statements, compliance officers’ reports and unit trust returns, for the months of March, April and May 2020, are extended by a period of three weeks from the stipulated time frame.

For the submission of audited financial statements, the deadline is extended by a period of two months from the stipulated time frame, for the financial years ending December 31, 2019 and March 31, 2020, respectively.
Meanwhile, the submission of annual and interim reports for unit trust funds is extended by a period of two months from the required time frame. 

However, the SEC said that the unit trust managing companies are encouraged to issue the aforesaid reports earlier where possible.

“The licensed/registered entities are advised to diligently monitor their risk profile and resources during this period to ensure safety and soundness of the industry. Notwithstanding the extensions of time, the entities should promptly report to the SEC any exceptional matters, which adversely affects,” the SEC said.

The regulator warned that failing to do so is likely to “adversely affect” the ability of such entities to meet their obligations, in respect of their licensed or registered business or any matter, which may indicate the financial standing or financial integrity.
 

The second relief measure extended is the postponement of the payment of the SEC’s annual licensing/registration fees for the year 2020, on the core regulated activity of all licensed/registered entities. Upon a request made to the SEC, a period of one year would be given to settle the annual fee.

The third relief is an additional period of six months for entities to fulfil the mandatory continuous professional development (CPD) requirement to transfer all investment advisors from the previous to the new Qualification Framework (QF).

Lastly, all investment advisors, who are required to obtain a minimum of two CPD seminar credits for the renewal of the licence of their respective stockbroker/dealer company (where such date of renewal falls within March to September 2020), will be granted an extension of six months from the date of the due date for renewal, in order to meet the said requirement. (SAA)