Summary: JPMorgan Chase publicly endorsed a proposal from the Trump administration to end mandatory quarterly financial reporting, with the bank's CFO stating support for measures that reduce regulatory burden and strengthen U.S. capital markets. The U.S. Securities and Exchange Commission is reported to be preparing a proposal to give companies the option of reporting semiannually instead of quarterly. JPMorgan said it would continue investor communications such as earnings calls even under an altered reporting regime.
JPMorgan Chase threw its support behind a White House proposal to eliminate mandatory quarterly reporting, with Chief Financial Officer Jeremy Barnum telling reporters that the bank favors efforts to simplify regulatory requirements and help maintain robust capital markets in the United States. President Donald Trump, who initially proposed the change in 2018, has argued the move would reduce costs for public companies and discourage a focus on short-term results.
"We’re very supportive of all initiatives and any initiatives that lessen the burden to ensure that U.S.-listed markets remain maximally robust," Barnum said on a post-earnings call.
According to media reporting cited in recent weeks, the U.S. Securities and Exchange Commission is preparing a proposal that would remove the existing quarterly reporting requirement and allow companies the option of sharing results twice a year. The reporting indicated the proposal would provide flexibility to U.S.-listed firms by changing the cadence of mandatory filings.
The discussion over quarterly reporting is part of a wider reassessment on Wall Street and in Washington about how disclosure rules frame corporate communications with investors. Several prominent corporate leaders have expressed support for altering the frequency of required reports, while also noting the ongoing value of regular engagement with analysts and shareholders.
Executives who have voiced support for the idea include Tesla's CEO Elon Musk and JPMorgan's own chief executive Jamie Dimon. At the same time, proponents of retaining frequent reporting emphasize that many companies already choose to communicate beyond what the SEC strictly requires.
"A thing that is not widely understood is that actually earnings calls, like the one that we’re doing today, are actually not required by the SEC. People do them because they want to communicate (with the) market," Barnum said. He made clear that JPMorgan would continue to host these calls for analysts and investors even if the mandated reporting schedule were altered.
Supporters of reducing the reporting frequency say the change could help shift management focus away from short-term earnings pressure, potentially allowing more latitude to pursue longer-term investments. They also point to alignment with reporting practices in some international markets that permit half-year reporting.
Opponents caution that scaling back the frequency of required reports risks reducing transparency and could leave investors with less timely information about corporate performance, a concern that becomes more acute during periods of market stress or uncertainty. "This (the end of quarterly reporting) winds up being mostly about the frequency with which you need to release the 10-Q and the amount of content in the 10-Q," Barnum said. "We can imagine streamlining that a little bit in line with feedback from investors about what they actually find useful."
The 10-Q filing, a comprehensive quarterly report mandated for U.S.-listed companies, includes detailed financial performance, risk factors and material business updates. Any regulatory change to reporting frequency would affect how and when that information is formally required to be filed with the SEC.
Key takeaways
- JPMorgan's CFO publicly supports a move to allow semiannual reporting as part of efforts to reduce regulatory burdens and bolster U.S. capital markets.
- The SEC is reported to be preparing a proposal that would give companies the option to report twice a year rather than quarterly.
- Banking, corporate finance and investor relations functions would be directly affected by any shift in reporting cadence.
Risks and uncertainties
- Reduced reporting frequency could lower transparency for investors, increasing information gaps for market participants - impacting investors and capital markets.
- Less frequent mandatory filings may leave companies' financial positions and risk disclosures less current during volatile periods - relevant to banks and other publicly traded corporates.