The CNBV granted certain time extensions as a result of SARS-COV2 outbreak

 Professional related: Ignacio Armida , Jaime Cortés , Manuel Echave , Patrick Meshoulam , Ricardo Maldonado   |      April 11th, 2020

THE NATIONAL BANKING AND SECURITIES COMMISSION GRANTED CERTAIN TIME EXTENSIONS AS A RESULT OF SARS-CoV2 OUTBREAK.

As a result of the ongoing COVID-19 international outbreak and the compliance issues that the measures to contain it may cause, the Chairman of the Mexican National Banking and Securities Commission (“CNBV”, for its acronym in Spanish), by means of the powers granted to him by the CNBV, issued a decree on March 25, 2020 (the “Filing Decree”) and a decree on April 8, 2020 (the “Extension Decree”), granting filing alternatives and time extensions, respectively, to comply with certain issuers’ periodic reporting obligations.

 

Reporting Obligations Article 104 of the Securities Market Law (“LMV”, for its acronym in Spanish) sets forth issuers’ obligations to file with the CNBV and the corresponding Stock Exchange, information regarding (i) corporate agreements, agreements adopted by the corporate governance and notices to be given in accordance with their by-laws or with the applicable regulation; (ii) quarterly reports including financial statements; and (iii) annual reports comprising the annual financial statements or their equivalents, accompanied by the external auditor’s opinion, among others. In addition, articles 33, 34, 37 and 38 the General Provisions applicable to Securities Issuers and other Market Participants (“CUE”, for its acronym in Spanish), set forth obligations to provide the CNBV, the corresponding Stock Exchange, and the general public, the financial, economic, accounting, administrative and legal information within the guidelines and due dates indicated in both the CUE and the LMV. In connection with the above, and as a result of the declaration of the preventive measures that include the reduction of the activities of several government offices, and the recommendation for companies to adhere to such measures, in most cases, the CNBV has granted a temporary due date time extensions of approximately 45 business days for the submission of the annual and quarterly information with the CNBV and the corresponding Stock Exchange as follows:

The issuers benefiting by the Extension Decree are: sociedades anónimas bursátiles (“SABs”), sociedades anónimas promotoras de inversión bursátil (“SAPIBs”), long term and short term debt issuers, that can be sociedades anónimas (“SAs”), sociedades de responsabilidad limitada (“SdeRLs”), sociedades anónimas promotoras de inversión (“SAPIs”) or fideicomisos emisores de certificados bursátiles (jointly with SAs, SdeRLs and SAPIs, the “Debt Issuers”), fideicomisos emisores de certificados bursátiles fiduciarios inmobiliarios (“FIBRAs”), fideicomisos emisores de certificados bursátiles fiduciarios de inversión en energía e infraestructura (“FIBRAs E”), fideicomisos emisores de certificados bursátiles fiduciarios de desarrollo (“CKDs”), fideicomisos emisores de certificados bursátiles fiduciarios de proyectos de inversión (“CERPIs”), exchange traded funds (fideicomisos emisores de certificados bursátiles fiduciarios indizados) (“ETFs”), fondos de fondos and warrant issuers (emisores de títulos opcionales).

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