US firms may stop quarterly reports

White House taking more control of SEC

- DOUGLAS GILLISON MICHELLE PRICE

President Donald Trump's renewed push to nix quarterly corporate disclosures, a drive that went nowhere in his first administration, has a better chance this time as the White House takes more control of the Securities and Exchange Commission’s agenda.

Trump on Monday called for the SEC to allow US-listed companies to issue periodic disclosures every six months instead of requiring quarterly reports. Echoing arguments made by business groups, Trump said the change would cut company costs and allow management teams to focus on the long term.

Despite likely opposition from some investors, some analysts said they expect the SEC would move to a European-style system in which companies are mandated to report only every six months by 2027, although many big companies would likely choose to stick with the current quarterly regime.

Trump had issued a similar call in his first administration, and a few months later the SEC, led by Jay Clayton, solicited public comment. But with an already crowded agenda and the Covid-19 pandemic shaking up government priorities, the SEC ultimately left the current regime in place.