As we previously posted, the Securities and Exchange Commission had announced that at tomorrow's open meeting the Commission would, among other things, consider a request for comment regarding earnings releases and the frequency of periodic filings. Well, today, the Commission released the Request for Comment.
This is not the first time that the Commission has considered the frequency of periodic reporting. In fact, from time to time, Commissioners and representatives of the Commission's Division of Corporation Finance have questioned whether quarterly or semi-annual reporting is more appropriate for public companies. However, following comments earlier in the year regarding the burdens placed on reporting companies as a result of the quarterly reporting requirement and the focus on short-termism that may result from quarterly earnings announcements, the Commission had been urged to conduct a study on these matters. The Request for Comment solicits information regarding the frequency of reporting; suggestions regarding simplifying the process by which investors access quarterly information; an option for companies that issue earnings releases to meet their quarterly report requirements through an enhanced release; and whether quarterly reporting or quarterly guidance fosters a short-term outlook.
A more detailed legal update will follow.
Here is a link to the Commission's Request: https://www.sec.gov/rules/other/2018/33-10588.pdf.
Visit us at mayerbrown.com
Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
© Copyright 2018. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.