The investment industry is urging Wall Street’s top regulator to stick to its current practice of requiring quarterly reporting from publicly traded companies. This comes after the U.S. Securities and Exchange Commission proposed allowing Wall Street-listed companies to switch to semiannual reporting in May.

Investor Concerns

Investors say their need for corporate disclosures to make investment decisions outweighs any benefit from eased reporting burdens on companies. The Investment Company Institute, a lobby group representing mutual and exchange-traded funds, submitted a comment letter stating that a survey of its members showed they viewed quarterly reports as highly or moderately important.

The Managed Funds Association, which represents hedge funds and other asset managers, also called on the SEC to scrap the proposal, citing the importance of timely and material information for investors. Other groups, including the California Public Employees’ Retirement System and the American Accounting Association, have also expressed opposition to the proposal.

Regulatory Proposal

The SEC proposed the change in response to a public call from President Donald Trump, aiming to deter short-termism among corporate leaders and reduce burdensome accounting and compliance costs. However, the agency acknowledged potential risks, such as leaving some investors less well-informed and eroding perceptions of fairness.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.