Jeremy Garvey is quoted in Financial Planning’s article discussing the SEC’s proposal to allow public companies to disclose earnings data semiannually, rather than quarterly. While companies could opt to continue quarterly reporting, the change would introduce variability in reporting cycles and reduce the frequency of available financial data. Less frequent semiannual earnings reports may affect whether clients invest in funds rather than individual stocks. “If you have enough of those individual stocks that make people nervous, then you know it probably has some impact. Now, it would have to be an awful lot of them,” said Jeremy.

Critics of the proposal noted that a company could delay addressing negative press by switching to semiannual reporting, and other market participants could view the choice to adopt the cadence as a sign of trouble. Advisors focused on diversified, long-term investment strategies may be largely unaffected, while those who emphasize frequent portfolio updates and stock selection could find the reduced data challenging.

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