- The Securities and Exchange Commission said it’s soliciting public comment on how to ease burdens associated with corporate financial reports for publicly listed companies.
- In August, President Donald Trump suggested shelving the quarterly reporting system.
- Any potential changes are expected to focus on smaller companies.
The Securities and Exchange Commission wants to know how to make required financial disclosures easier for publicly listed companies, months after President Donald Trump recommended getting rid of quarterly reports.
The regulator said in a press release Tuesday it’s seeking public comment on how to reduce burdens associated with earnings releases and quarterly reports. Officials are also studying how the existing system may foster an overly short-term focus.
“There is an ongoing debate regarding the effects of mandated quarterly reports and the prevalence of optional quarterly guidance,” said SEC Chairman Jay Clayton. “Our markets thirst for high-quality, timely information regarding company performance and material corporate events.”
The SEC said it planned to solicit public comment on the issue after Trump suggested ditching rules that require listed companies to release financial reports every three months.
“In speaking with some of the world’s top business leaders I asked what it is that would make business (jobs) even better in the U.S,” he said in a tweet in August. “‘Stop quarterly reporting & go to a six month system,’ said one. That would allow greater flexibility & save money. I have asked the SEC to study!”
According to Reuters, changes are expected to focus on smaller public companies, while the current system would hold for larger firms.
The public comment period will be open until March.
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