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

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

Such a switch would mark a huge change in the U.S. Securities and Exchange Commission's disclosure requirements and put them in line with European Union and United Kingdom rules.

"That would allow greater flexibility & save money", Trump said in a tweet. "I have asked the SEC to study!" He said outgoing PepsiCo Inc (PEP.O) Chief Executive Indra Nooyi had brought it up to him.

There are also tremendous expenses tied to preparing quarterly and annual reports.

"Many market participants, as well as the Business Roundtable which we are a part of, have been discussing how to better orient corporations to have a more long-term view", Nooyi said in a statement emailed to Reuters. "I'm not sure the earnings reports make that much of a difference".

SEC Chairman Jay Clayton, a Trump nominee, has said increasing the number of public companies and initial public offerings are among his top priorities.

Ultimately, the SEC would need the majority of its sitting commissioners (there are now four) to vote for the final changes.

President Donald Trump said on Friday (Aug 17) he had asked stock market regulators to look into ending the requirement for businesses to issue quarterly earnings reports.

Following Clayton's statement, the agency also announced it had voted to adopt a rule change first proposed in 2016 to streamline some company accounting disclosures, in an unscheduled private commission vote.

While capital market rules are not traditionally a partisan issue, a major rule change would likely meet opposition from the agency's two Democratic-leaning commissioners, Robert Jackson and Kara Stein, who generally advocate for strong corporate governance.

HOT: Priyanka Chopra & Nick Jonas’s Pre-Engagement Celebrations!
With this, Priyanka , 36, and Nick , 25, put to rest the long-standing speculation around their relationship status. With all my heart and soul." she captioned the photo on Instagram . "My Heart.

But critics contend that new reporting requirements may not spur meaningful change given the deluge of company information available on social media.

The SEC consists of five commissioners appointed by the president, although there now are only four in place, three named by Trump.

No. The SEC is independent of the administration and sets its own agenda.

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

"I do believe it will help upper management".

Quarterly reports are "early warning signs of other bigger problems", Elson said.

The SEC requires such companies to share profit, revenue and other figures publicly every three months. Trump said in a Twitter post.

In 1998, there were around 7,500 listed companies in the United States, compared with around 4,300 in 2017, according to data compiled by the World Bank.

The SEC has been reluctant to make changes in quarterly reporting, which has always been a cornerstone of United States capital markets. That was the argument made by Jamie Dimon, the chief executive of JPMorgan Chase, and investor Warren E. Buffett in a widely shared op-ed published by the Wall Street Journal in June. The most recent data from the United Kingdom shows that only 57 of the companies in the benchmark FTSE 100 index were still issuing quarterly reports as of September 2017, according to the Investment Association.

Related Articles

  • Brady, Foles finally shake hands after Super Bowl snub

    Brady, Foles finally shake hands after Super Bowl snub

    Here's a position-by-position look at what stood out after re-watching the Eagles' second preseason game against the Patriots. Foles immediately grabbed his arm in pain and was replaced with third-string quarterback Nate Sudfeld .
    Stokes returns to England Test team after being cleared of affray

    Stokes returns to England Test team after being cleared of affray

    The biggest headache for Virat Kohli to sort out the top order woes and he will have to juggle a bit with his batting options. But it still needed a robust effort from two of the side's senior batsmen to restore the dressing room's confidence.
    We Must Forget About Cristiano Ronaldo — Real Madrid Star

    We Must Forget About Cristiano Ronaldo — Real Madrid Star

    The Europa League holders are tipped to battle FC Barcelona and Real Madrid for the Spanish La Liga title in the upcoming campaign.
  • Sarri identifies exactly where Chelsea need to improve after win over Arsenal

    Sarri identifies exactly where Chelsea need to improve after win over Arsenal

    Eden Hazard started on the bench for Chelsea again on Saturday, but came on in the second half with devastating impact. The summer arrival did not make the matchday squad for the Blues' Premier League opener at Huddersfield last Saturday.
    Manchester City’s Kevin De Bruyne suffers knee injury in training

    Manchester City’s Kevin De Bruyne suffers knee injury in training

    Chelsea's loss has certainly been Man City's gain - hopefully the Premier League gets De Bruyne back fit and firing again soon. Having made five Premier League appearances, he became youngest ever Premier League victor at just 17 years and 350 days old.
    Netflix Cancels The Break with Michelle Wolf, Joel McHale Show

    Netflix Cancels The Break with Michelle Wolf, Joel McHale Show

    Netflix a year ago canceled its first foray into the genre, Chelsea Handler's celebrity talk show, following its second season. Stay tuned to see what else Netflix cancels and what other shows they announce to replace them.
  • Ghanaian players react to Kofi Annan's death

    Ghanaian players react to Kofi Annan's death

    Geneva: Former UN Secretary-General and Nobel Prize Laureate Kofi Annan died on Saturday at the age of 80, his family said. Secretary-General in NY from 1997-2006 and retired in Geneva and later lived in a Swiss village in the nearby countryside.
    Jamie Vardy Given Straight Red Card Against Wolves

    Jamie Vardy Given Straight Red Card Against Wolves

    The three points picked up by Fulham that day helped them secure safety, and Warnock's side were relegated to the second tier. Newcastle got their chance with a penalty in the final minute of the contest, but Kenedy's poor effort saw the spoils shared.
    Colorado woman and daughters may have been strangled, court documents reveal

    Colorado woman and daughters may have been strangled, court documents reveal

    But he said he became anxious when one of her friends contacted him around noon and said Shanann wasn't responding to messages. Shanann Watts also included her young daughters' sentiments about the supposedly loving husband and father on Facebook .
  • Calling all pasta lovers: Low carb diets could actually shorten your lifespan

    Calling all pasta lovers: Low carb diets could actually shorten your lifespan

    The food questionnaire in the study may have also led some people to underestimate the calories and fat they had eaten. Instead, it suggests a moderate amount of carbohydrate - around 50 to 55 per cent of your diet - is healthiest.
    Measles Symptoms, Vaccine: 107 People Across 21 States Infected

    Measles Symptoms, Vaccine: 107 People Across 21 States Infected

    While the disease is treatable, the CDC said, one or two out of every 1,000 children who get measles die from complications . Herd immunity is achieved when at least 95% of the total population of a country gets the recommended two doses of vaccine.
    Wallabies suffer Thor-sized Bledisloe blow

    Wallabies suffer Thor-sized Bledisloe blow

    Now that bench unit has been compromised, with Ainsley facing a daunting task making his test debut against his country of birth. He played in all three tests against Ireland in June and was lauded for his strong play at both set piece and with ball in hand.