Trump asks SEC to consider ending required quarterly reports


The European Commission, among others, only requires semi-annual financial reports of companies there, although major European companies whose stock is traded in both the United States and Europe will report on a quarterly basis in order to comply with SEC regulations.

He said that after meeting with business leaders he had asked the US Securities and Exchange Commission to investigate making such a change. "That would allow greater flexibility & save money", he tweeted.

The SEC consists of five commissioners appointed by the president, although there now are only four in place, three named by Trump, including Clayton.

Trump said on Twitter that "some of the world's top business leaders" have advised him that converting to semiannual reporting would improve the country's jobs climate.

"[A six-month system] would get investors and companies to think longer-term", Svezia said. A spokeswoman for Chairman Jay Clayton did not respond to a request for comment.

Nooyi confirmed she had talked to Trump about the change of schedule.

Tesla Inc Chief Executive Elon Musk stunned investors last week with a plan to take the electric carmaker private, a move he says would benefit shareholders by removing short-term pressures. "We start preparing three weeks in advance every quarter, essentially taking nearly a third of executives' time each quarter", said Bryan Sheffield, chief executive of shale oil producer Parsley Energy Inc. Two influential figures, JPMorgan Chase CEO Jamie Dimon and billionaire investor Warren Buffett, recently urged together that public companies either reduce or eliminate quarterly earnings guidance.

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Companies that want to move away from short-term scrutiny should instead stop publicly projecting the next quarter's earnings, Pozen added.

Trump's proposal, offered in a 7:30 a.m. tweet, took the securities industry by surprise and prompted some to worry that it could unintentionally lead to more market volatility and corporate mischief.

In a report published by the US Treasury a year ago, the administration outlined policies it hoped would revitalize listings - but did not go as far as suggesting quarterly reporting requirements be scrapped. Some said the change could help companies to invest more in their businesses rather than race to show profit gains each quarter.

"Less frequent reporting can raise the cost of capital", he said.

While the quarterly earnings season has a negligible impact on market-wide volume, it does coincide with an increase in price turbulence among individual companies.

The U.S. Chamber of Commerce and other lobbying groups have blamed compliance burdens for preventing more companies from selling shares.