WASHINGTON (Reuters) - The U.S. Securities and Exchange Commission (SEC) said on Tuesday it was seeking public comment on ways to ease the quarterly reporting burden for publicly listed companies.
The proposal comes months after President Donald Trump asked the regulator to explore doing away with quarterly disclosures, saying on Twitter he had heard from business leaders it would “allow greater flexibility and save money.”
The SEC said it wanted input on ways to reduce burdens on quarterly reporting while maintaining effective disclosure. It gave no indication it was considering dropping a long-standing arrangement for twice-yearly reports, as Trump had urged in an August tweet, and the regulator is not committed to taking up future rulemaking that would alter current reporting requirements.
“There is an ongoing debate regarding the effects of mandated quarterly reports and the prevalence of optional quarterly guidance,” said SEC Chairman Jay Clayton.
“We recognize the importance of this information to well-functioning and fair capital markets. We also recognize the need for companies and investors to plan for the long term. Our rules should reflect these realities.”
The SEC had said in October it would be seeking comment on this issue.
But Clayton has indicated that any relief on reporting requirements would be focused on smaller public companies, while maintaining the current system for the largest firms.
Reporting by Katanga Johnson; Editing by Jeffrey Benkoe and Bernadette Baum