Trump asks SEC to study half-yearly financial reporting disclosures

President Trump has asked the Securities and Exchange Commission to look into having publicly traded companies — including listed private equity firms such as KKR, Blackstone Group and Apollo Global Management — report their financial statements on a half-yearly basis instead of quarterly.

Some companies have claimed that reporting fewer times during the year would allow them to save on resources and focus on longer-term business operations and strategy. Under SEC rules, publicly traded companies must file their Form 10-Q on a quarterly basis.

Trump tweeted Friday morning: “In speaking with some of the world’s top business leaders I asked what it is that would make business (jobs) even better in the U.S. ‘Stop quarterly reporting & go to a six month system,’ said one. That would allow greater flexibility & save money. I have asked the SEC to study!”

Only the SEC can make amendments to its rules and regulations.

SEC Chairman Jay Clayton said in a statement that Trump “has highlighted a key consideration for American companies and, importantly, American investors and their families — encouraging long-term investment in our country” and that “the SEC’s Division of Corporation Finance continues to study public company reporting requirements, including the frequency of reporting.”

Trump has been pushing for an examination of US financial system regulation. As part of his directive, the Treasury Department released a report that called for Congress to amend laws that prevent firms — including those in private equity — from sharing their technology with regulators. The Treasury said that enabling regulators to use new financial technology created by firms could “improve the execution of their own regulatory responsibilities” and that regulators should not “create unnecessary barriers to innovation.”