Explainer: It will be tough for Trump's SEC to overhaul reporting rules

20 August, 2018, 04:29 | Author: Elaine Woods
  • President Trump speaks during a Cabinet meeting at the White House on Aug. 16

Securities and Exchange Commission Chairman Jay Clayton on Friday issued a statement about long-term investing in which he neither endorsed nor rejected the call from President Donald Trump for companies to report to twice a year, rather than four times a year.

The move would improve "flexibility and save money" Trump said. He also said he would find it challenging not to get information every quarter because so much can change in six months.

The idea came from an unnamed "top business leader", Mr. Trump wrote, although the idea has been bandied around for decades.

A top criticism is that if companies are striving to report profit gains every quarter, they are more likely to buy back shares and cut costs than invest in their businesses.

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.

But moving away from reporting earnings every three months would be a much more dramatic change that would nearly certainly trigger resistance from shareholders who want transparency from the companies they invest in.

"If public companies moved from quarterly to semi-annual reporting, that would deprive investors of timely information and dramatically increase the potential for insider trading", said Robert Pozen, Senior Lecturer at the MIT Sloan School of Management, who has studied the issue. The report compares company earnings with that of the previous year. "Many investors and market participants share this perspective on the importance of long-term investing". That can pressure executives to engage in reckless practices to hit quarterly targets or even to manipulate earnings reports. One provision of the bill includes a requirement that the SEC review the quarterly reporting requirement.

You need the Fortnite Installer app installed for updates to the game
After acquiring a skin, a player would then choose a weapon category and then pick which specific gun they want the skin to be on. Epic Games' decision to not list Fortnite on Google Play could cause Google to miss out on over $50M in platform fees.

Romanians Hit Streets Again For Antigovernment Protests
Podut said: "Almost all of the public sector is malfunctioning, it must be changed completely and replaced with capable people". The changes are being challenged in the constitutional court.

How to install Fortnite Beta on your Android phone
Keeping with tradition, the Note 9 will also have a 512GB microSD card slot, so users can get over 1 TB of storage . What's new is its AI Scene Optimiser which works like Huawei's Master AI feature on the Mate 10 and P20 series.

Billionaire investor Warren Buffett and JPMorgan Chase & Co Chief Executive Jamie Dimon wrote in the Wall Street Journal in June that US companies should move away from giving quarterly guidance, arguing it holds back spending on hiring, investment and research, but did not call for an end to quarterly reporting.

He said outgoing PepsiCo Inc (PEP.O) Chief Executive Indra Nooyi had brought it up to him.

The SEC has been reluctant to make any changes in quarterly financial reporting, which has always been a cornerstone of USA capital markets.

The SEC has been reluctant to make changes in quarterly reporting, which has always been a cornerstone of United States capital markets. A statistic they often point to is the drop in IPOs over the past 20 years.

The SEC could make such a change on its own without Congress passing legislation but that doesn't mean it will, said David Martin, who previously ran the agency unit that oversees corporate filings.

Druckenmiller noted that investors like to know what's going on with the companies they invest in.

President Trump has instructed the American markets watchdog to investigate ending the quarterly reporting requirement for public companies that has been in place for almost 50 years. That number fell to 237 in 2017.

Recommended:



Popular

Pandya rips England apart with five
The vice-captain reckoned India's performance on the day was good but lamented the late wicket of Hardik Pandya . For England , James Anderson (3/64), Stuart Broad (3/72) and Chris Woakes (3/75) picked up three wickets apiece.

Turkish lira resumes fall after Trump sanctions threat
Brunson, a 50-year-old evangelical pastor from Black Mountain, North Carolina, is being held on charges related to terrorism. Investors are concerned that Turkey has amassed high levels of foreign debt to fuel growth in recent years.

Aretha Franklin - The Malkah of Soul
Franklin's music also helped serve as a springboard for a number of young guitarists who later became legends themselves. McKinney - who first met Franklin when she was 17 - toured with the Queen of Soul as recently as 2016.

President Trump Reportedly Asked Jeff Sessions to Have Omarosa Arrested
The comments were made after DeVos visited Howard University in May 2017 and was booed by the student body. The president has attacked Manigault-Newman in recent days after excerpts from her book were disclosed.

United States ambassador to London pushes Britain to ditch Iran deal
In an article for The Sunday Telegraph Mr Johnson told British companies to stop doing business with Iran... The U.S. administration blames Iran for fomenting instability in the Middle East and encouraging terrorism.

Va. gov., Charlottesville declare state of emergency ahead of rally anniversary
The violence culminated with a man driving a vehicle into a crowd of counter-protesters, killing a woman and injuring 19 people. Lee from downtown park, quickly deteriorated into clashes, prompting officials to declare the event illegal.

Spurs begin season with entertaining win at Newcastle
Kane has now played nearly 1,000 minutes of Premier League football in August, leading many to question why anyone would select Kane before September rolls around.

NASA sending spacecraft straight into sun's glittering crown
The Parker probe, which will venture the nearest ever to the Sun to study its atmosphere, will be launched on August 11th. The big launch is now less than 40 hours away, with the probe's first close approach to the sun slated for November.

Launch of NASA's Parker Solar Probe a success — LIFT OFF
Instruments on board may also help to explain why the corona is hotter than the sun's surface by several orders of magnitude. Scientists have devised ways to ensure the automated and unmanned probe does not melt in the extreme heat and radiation.

Carolina Panthers: Top players to watch against Buffalo Bills
Cam Newton and Kelvin Benjamin addressed their feud in what seems to be the most awkward manner possible. Benjamin saved his best compliment for young Damiere Byrd, though.