Interim Management Statements
View of global institutional investors on the removal of the IMS reporting requirement
In anticipation of the Financial Conduct Authority (FCA) in the UK removing the requirement in the EU Disclosure and Transparency Rules to publish interim management statements (IMS) and quarterly reporting for UK listed companies, FTI Consulting’s Strategy Consulting & Research team surveyed global institutional investors (representing a total of over USD$3 trillion under management) for their views.
On balance, 59% of surveyed investors believe that companies should continue with IMS reporting on a voluntary basis and 61% expect that most companies will in fact follow the same levels of disclosure. However, they do acknowledge the benefits for companies by not reporting IMS. These benefits include reducing excessive focus on short term performance (from both an investor and management perspective) and lifting the administrative burden.