JPMorgan Backs Ending Mandatory Quarterly Reporting

JPMORGAN CHASE & CO has expressed its support for a United States government proposal to eliminate mandatory quarterly financial reporting. Chief Financial Officer Jeremy Barnum stated that the bank favors initiatives that reduce regulatory burdens to ensure that domestic markets remain robust. The proposal, which was initially introduced in 2018, aims to lower costs for publicly traded companies and discourage a focus on short-term results. The Securities and Exchange Commission is currently preparing a plan that would allow companies to report their financial results twice a year instead of every quarter. > We're very supportive of all initiatives and any initiatives that lessen the burden to ensure that U.S.-listed markets remain maximally robust. Several prominent corporate leaders, including TESLA INC CEO Elon Musk and JPMorgan CEO Jamie Dimon, have previously voiced support for such a change. Barnum noted that while companies often host quarterly earnings calls to communicate with the market, these sessions are not actually required by federal law. > 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. While JPMorgan intends to continue its regular communications with shareholders, Barnum suggested that the formal 10-Q filings could be streamlined. > This 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. Proponents of the shift argue that it would allow executives to focus more on long-term investments and align the American market with international standards. Conversely, opponents caution that reducing the frequency of disclosures could decrease transparency and provide investors with less timely information during periods of economic uncertainty. > We can imagine streamlining that a little bit in line with feedback from investors about what they actually find useful.