The U.S. Securities and Exchange Commission proposed allowing listed companies to report earnings semi-annually instead of quarterly, but investors flooded the public comment period that closed on the 6th with calls to keep the current quarterly reporting mandate. The SEC floated the repeal proposal in May at the request of President Trump, citing benefits such as curbing short-termism among executives and reducing costs. However, investors argued that the importance of information needed for investment decisions outweighs any relief from easing corporate burdens. The Investment Company Institute noted that in a survey of 14 member firms with a combined 6.1 trillion dollars in assets under management, 62 percent said quarterly reporting is very important. The Managed Funds Association also urged the SEC to withdraw the proposal. The California Public Employees' Retirement System and the American Accounting Association submitted opposing views, with the AAA warning that semi-annual reporting could allow accounting problems to go undetected for longer periods. Meanwhile, JPMorgan Chase and Nasdaq welcomed the proposal, expressing support on the grounds that it would strengthen companies' long-term focus and revitalize capital markets.
JPMorgan Chase & CoJPMorgan Chase welcomed the SEC proposal to allow semi-annual reporting, which could reduce compliance costs and long-term focus.
Nasdaq IncNasdaq welcomed the SEC proposal, viewing it as beneficial for long-term focus and capital markets revitalization.