Legal & General to end quarterly reporting

 
Jessica Morris
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Quarterly reporting can encourage short-termism (Source: Getty)

Asset manager Legal & General announced it will end quarterly reporting next year, to focus on the long-term interests of the company.

"The board feels the decision will enhance its communications with investors and other stakeholders, as it will allow the company to better articulate Legal & General's business strategies and the long-term dynamics of its markets, through timely and frequent updates, rather than quarterly trading figures," it said in a statement to the London Stock Exchange today.

In June, Legal & General wrote to the UK’s biggest 350 listed companies, urging them to ditch quarterly reporting. They company said it risks steering managers towards short-term goals, at the expense of longer-term business drivers.

Read more: Bank of England's Andy Haldane challenges “shareholder-centric model” for businesses

It followed a UK rule in change in November 2014 that put an end to mandatory financial reports every three months.

"The future success of the UK economy is dependent on companies and shareholders making the correct long-term business decisions," Nigel Wilson, group chief executive, added.

"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."

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