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SEC Adopts Reporting Changes Amid Debate over Ending Quarterly Reports

President Trump’s announcement that he asked the SEC to study six-month reporting for public companies has spurred debate on corporate transparency and long-termism, as reported by the Wall Street Journal. There are reasoned opinions on both sides of the debate from the legal and accounting sectors. SEC Chairman Jay Clayton responded in a statement saying: “The President has highlighted a key consideration for American companies and, importantly, American investors and their families — encouraging long-term investment in our country.  Many investors and market participants share this perspective on the importance of long-term investing.” Clayton added that the SEC’s Division of Corporation Finance continues to study public company reporting requirements, including the frequency of reporting. The SEC also announced that it has adopted amendments to certain disclosure requirements that have become duplicative, overlapping, or outdated in light of other disclosure requirements, GAAP, or changes in the information environment.  The amendments are intended to simplify and update the disclosure of information to investors and reduce compliance burdens for companies without significantly altering the total mix of information available to investors, the announcement said.