Trump asks SEC to study six-month reporting system for public firms

Trump asks SEC to study six-month reporting system for public firms

Trump asks SEC to study six-month reporting system for public firms

"If public companies moved from quarterly to semi-annual reporting, that would deprive investors of timely information and dramatically increase the potential for insider trading", said Robert Pozen, Senior Lecturer at the MIT Sloan School of Management, who has studied the issue.

The president on Friday said he has asked federal regulators to study whether public companies should be required to report results half as often as they now do - every six months instead of every three months, or once a quarter.

The SEC could make such a change on its own without Congress passing legislation, but that doesn't mean it will, said David Martin, who previously ran the agency unit that oversees corporate filings.

For companies, "That would allow greater flexibility & save money", Trump tweeted.

Kevin Lamarque/ReutersU.S. President Donald Trump hosts a meeting with business leaders in the Roosevelt Room of the White House in Washington January 23, 2017.

"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", Trump tweeted.

Publicly traded companies in the United States now file their earnings reports every three months, or four times a year. A spokeswoman for Chairman Jay Clayton did not respond to a request for comment.

He said outgoing PepsiCo Inc Chief Executive Indra Nooyi had brought it up to him. The SEC is the regulatory arm of the SEA, and since its formation, quarterly earnings reports have been mandatory.

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Donald Trump has called for USA companies to issue financial reports just twice a year rather than four times.

It's a move that would benefit businesses and workers, the president said.

President Donald Trump on Friday tweeted that the United States could abandon quarterly financial reporting.

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

In a report published by the US Treasury previous year, the administration outlined policies it hoped would revitalize listings - but did not go as far as suggesting quarterly reporting requirements be scrapped. The report compares company earnings with that of the previous year. Well-known chief executives, including JPMorgan Chase & Co's Jamie Dimon, Berkshire Hathaway Inc's Warren Buffett and BlackRock Inc's Larry Fink have raised concerns about the focus placed on earnings reports and guidance.

On the other side are many investors who say frequent insight into the financial performance of corporations is critical to their own decision-making and financial security.

Business groups including the US Chamber of Commerce, the Securities Industry and Financial Markets Association and exchange operator Nasdaq have been lobbying hard over the past year for lawmakers and the SEC to relax listing rules, warning that the decline in listings hurts jobs and pension funds.

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