L&G to ditch quarterly reporting

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Legal & General is to shed quarterly reporting in 2016 as pressure grows on major corporations to focus on generating long-term value for investors.

The company will use “timely and frequent” updates next year, rather than three-monthly trading figures, to communicate with investors.

In June, LGIM wrote to all FTSE 350 companies to urge them not to continue publishing quarterly results.

In October, Schroders also joined LGIM in its calls for firms to drop quarterly reporting.

The rules from accounting watchdog the Financial Reporting Council changed a year ago, meaning companies no longer have to publish interim management statements, which fall between half yearly reporting.

L&G group chief executive Nigel Wilson says: “Legal & General believes in long termism. The future success of the UK economy is dependent on companies and shareholders making the correct long-term business decisions.

“Legal & General believes making this change will help management and the board make the right long-term decisions in the interests of all our stakeholders.”

The firm will publish its 2015 full year results on 15 March 2016.

Wilson adds: “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.”