As has been widely reported, on Friday, President Trump announced in a tweet that he had asked the SEC to study moving to a semi-annual financial reporting scheme for public companies in lieu of quarterly reporting in response to feedback he had received from one of the world's top business leaders on improving the US business climate.
The tweet triggered this Statement from SEC Chair Clayton:
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. Recently, the SEC has implemented — and continues to consider — a variety of regulatory changes that encourage long-term capital formation while preserving and, in many instances, enhancing key investor protections. In addition, the SEC’s Division of Corporation Finance continues to study public company reporting requirements, including the frequency of reporting. As always, the SEC welcomes input from companies, investors, and other market participants as our staff considers these important matters.
House Financial Services Committee Chair Jeb Hensarling chimed in, praising the President's efforts on capital formation, and noting that the JOBS Act 3.0 (reported on here), House-passed Modernizing Disclosures for Investors Act (Rep. Ann Wagner [R-MO]) requires the SEC to - among other things - conduct, and report to Congress on, a cost-benefit analysis of mandatory quarterly reporting.
CII also responded to Trump's tweet, affirming its support for the current quarterly financial reporting scheme, but reiterating its backing of the Business Roundtable's recent call for companies to move away from quarterly, or so-called short-term, earnings guidance, as previously reported on here.