Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Corporate Reporting topic
No spam. Unsubscribe anytime.
Hill: More information benefits investors, but some companies may need reporting flexibility
Summary
Rep. French Hill said more frequent reporting is generally better for investors but acknowledged some firms could use optionality to switch from quarterly to semiannual reporting; he cited compliance costs tied to Sarbanes-Oxley and the Dodd-Frank Act.
The interviewer noted that an SEC figure named Paul Atkins had endorsed moving corporate earnings reports from quarterly to semiannual, and asked Rep. French Hill for his view. Hill said that before Congress he worked in investment management and banking and that "more information is better for investors than less." He added, however, that some businesses do not need quarterly reporting and that giving corporate boards and management optionality could lower costs that deter small companies from going public.
Hill pointed to compliance costs created after the Sarbanes-Oxley Act and the Dodd-Frank Act and said those regulatory burdens are factors that can impede small companies considering an initial public offering. He suggested the SEC should review options carefully and ensure any changes comply with the Administrative Procedure Act to limit legal liability.
No regulatory change had been reported during the interview; Hill framed the conversation as a call for study and careful review rather than immediate regulatory action.
