SEC advises companies not to disclose potential impact of events

The U.S. securities regulators have advised public companies not to disclose to investors any potential impacts of the industry, according to the U.S. securities regulator on Thursday.

In guidance to public companies, the SEC laid out information that businesses may have to share with their investors, including whether they have any financial exposures to counterparties that have filed for bankruptcy or become insolvent.

The guidance applies to companies that have exposure to recent ructions in the digital currency. Publicly traded firms are required by law to disclose financial material to investors, but the SEC gives more specific guidance about how they should address risks from major events.

The SEC said that companies may have disclosure obligations under the federal securities laws related to the direct or indirect impact that these events and collateral events have had on their business.

The guidance said public firms should be prepared to share any risks from disruptions in the market, such as depreciated stock prices, loss of customer demand and risk of legal proceedings.