Wall Street is braced to hear whether US watchdogs are about to start work on abolishing quarterly reporting to usher in a new era of disclosures.
Reports in a number of publications suggest officials at the US Securities and Exchange Commission may publish proposals this month with a view to easing the regulatory burden on companies.
It remains unclear exactly what the proposals will be, but they have the potential to be seismic for governance in the US, particularly if watchdogs make quarterly reports “optional”.
According to a blog from Minerva, the shareholder advisers, it remains possible companies will continue to publish results each quarter.
“Once released the proposals will trigger an intense lobbying battle,” writes Minerva. “Corporate executives and Republican lawmakers are likely to frame it as a competitiveness issue. Investors will frame it as a transparency and accountability issue.”
Cost and competitiveness
According to Global Finance, a business website, one CFO has estimated that each quarterly report costs around $100,000 to process.
A switch to twice-yearly reporting might also bring US companies into line with other jurisdictions, including the UK, where quarterly reports are not required. This could make the US more attractive as a destination for capital.
News of the end for quarterly reports was flagged soon after Donald Trump began his second tenure in the White House. Last month, the Wall Street Journal reported that plans could be revealed as early as April.
In September last year, SEC chair Paul Atkins said the watchdog was fast-tracking proposals. Reuters quoted Atkins as saying: “The president’s call was timely, and so we are, you know, working to fast track it.”
Politico, a leading US news site, reported this week that the SEC proposals could meet with stiff opposition from investors. The site quotes Carson Block, chief executive of investment managers Muddy Waters, saying: “It’s objectively a bad idea. This is, at the of the day, Trump giving a lot of people what they think they want.”
But the change has its backers. Sarah Keohane Williamson, chief executive of FCLTGlobal, a body that advocates for long-term investment, writes on LinkedIn that the changes will be a “genuine opportunity to reorient how public markets measure corporate performance”.
She adds: “The goal is not less transparency; it is better transparency, oriented toward the investors who are saving for the next 30 years, not the next 30 days.”
The US market is braced for a change and the debate that will follow. Many other markets will watch with interest, knowing they’ve already settled the issue.


