Investors push back against SEC plan to scale back quarterly reporting

The U.S. Securities and Exchange Commission initiated the proposal following a request from President Donald Trump, citing the potential to curb short-termism and lower compliance costs for firms. While companies like JPMorgan Chase and Nasdaq have welcomed the possibility of easing reporting burdens to foster a longer-term focus, the investor response suggests the move could face significant resistance.

The Investment Company Institute, representing funds with $6.1 trillion in assets, reported that 91% of its surveyed members view quarterly disclosures as essential. Similarly, the Managed Funds Association argued that timely, material information remains the bedrock of market integrity. Critics from the American Accounting Association further cautioned that less frequent reporting might allow accounting errors to remain hidden for extended periods, ultimately increasing remediation costs for shareholders. Although the U.S. has mandated quarterly cycles since 1970, the SEC now faces the challenge of balancing corporate efficiency against the persistent demand for granular, real-time data.