August 9, 1991
TO: INVESTMENT ISSUES COMMITTEE NO. 9-91
RE: LEGISLATION TO ABOLISH QUARTERLY REPORTS INTRODUCED
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Attached is a copy of H.R. 2910, the "Long Term Investment
Promotion Act of 1991", which recently was introduced in the
House of Representatives. H.R. 2910 would amend the Securities
Exchange Act to remove the requirement that corporate issuers
file quarterly reports (10-Qs). The stated purpose of the
legislation is to encourage corporations to adopt longer-term
horizons. In particular, the bill states that the managers of
mutual funds, which own a "large and growing share of the capital
of United States firms" are "under constant pressure to maximize
the current value of their portfolios since this is the principal
criteria by which their performance is judged".
If you have any thoughts on the legislation, particularly
with regard to how the abolition of quarterly reports would
affect the ability of funds to make investment decisions, please
call me.
Lawrence A. Rogers
Senior Counsel
Attachment