AmTrust Financial Services disclosed it has received warnings from both the NASDAQ and the New York Stock Exchange that it is not in compliance with listing rules, due to delays over the filing of its 2016 annual report.
AmTrust has twice notified the need to delay filing of its 10-k, most recently on March 16, citing the need to give an internal audit extra time for completion.
The New York City-based insurance holding company said that the NASDAQ and NYSE informed it that compliance is lacking in terms of rules affecting its common stock and non-cumulative preferred stock series A-F respectively. These notices came out because of AmTrust’s delay in filing its Form 10-k/annual report, AmTrust said.
There’s no immediate impact yet for AmTrust. NASDAQ rules say it has until May 16 to file the Form 10-K, or submit a plan to regain compliance concerning its reporting obligations. AmTrust said it plans to submit a compliance plan on or before May 16.
The NYSE, on the other hand, requires AmTrust to file its form 10-K within six months from March 16 in order to regain compliance. If not, NYSE could grant a six-month extension, depending on the circumstances.
AmTrust said it “intends to take all necessary steps to achieve compliance with the continued listing requirements of NASDAQ and the NYSE.”
AmTrust’s March16 announcement about further 10-K delays came two weeks after its disclosure it would need more time to complete its annual report.
Why the delay? AmTrust said it needed the audit because its previously issued consolidated financial statements for 2014 and 2015, the first three quarters of 2016, the 2016 fourth quarter and fiscal 2016 earnings statements and related press materials “should no longer be relied upon.” AmTrust added the reports of its former independent auditor BDO USA were also at issue, particularly its opinion on the company’s consolidated financial statements for 2014 and 2015 and its opinions “on the effectiveness of internal controls over financial reporting for such periods.”
Source: AmTrust Financial Services