Legal & General ends interim reporting

ReportingLegal & General, the UK insurance company that owns Legal & General Investment Management (LGIM), is to stop issuing quarterly reports from next year, taking advantage of a regulatory change that means companies no longer have to report interim management statements. Legal & General says it has shareholder support for the move and that the halting of interim reporting is in the best long-term interests of the company, shareholders and customers. The Financial Conduct Authority ended the requirement for quarterly reporting last year. The move is in line with attempts to foster more long-termism in markets, as advocated by Professor John Kay in his Kay Review, which focused on equity markets and long-term decision making. LGIM wrote to all the FTSE 350 boards in June, giving its support for the ending of the mandatory requirement for companies to disclose financial reporting on a quarterly basis. LGIM told FTSE companies that it was up to boards to make the appropriate decision on quarterly reporting, based upon their own business environment. Explaining its own move to end quarterly reporting, Nigel Wilson, group chief executive of Legal & General, says: “Our business cycle is long-term, with many of our investment and business decisions playing out over years and sometimes decades, rather than quarters. As such, ending quarterly reporting will allow us to focus on communicating what is relevant to the value creation in Legal & General’s businesses.” ©2015 funds europe

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