SEC Seeks Comment on Frequency of Financial Reports

The Securities and Exchange Commission yesterday sought comment on the current regime of quarterly financial reporting for public companies, including potential duplication between Forms 10-Q and 8-K, as well as whether the agency should provide companies with greater flexibility in scheduling their periodic reporting. The agency also said it is seeking comment on how the existing system of reports and earnings releases affects corporate strategy, including whether it fosters inefficient activities driven by short-term results.

The move comes months after President Trump said in a tweet that he had asked the SEC to study the quarterly reporting system. “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.,” the president said. “‘Stop quarterly reporting [and]go to a six month system,’ said one. That would allow greater flexibility [and]save money.” Comments on the SEC’s filing are due 90 days after it is published in the Federal Register.