The U.S. Securities and Exchange Commission will propose a rule change to allow companies to issue earnings reports every six months instead of quarterly, following President Donald Trump’s push to ease corporate reporting requirements, CNBC reported.
Paul Atkins, chairman of the SEC, said Friday the agency will advance a proposal to move from quarterly to semi-annual reporting, a change he said could give businesses greater flexibility.
“I welcome that posting by the president, and I have talked to him about it,” Atkins said on CNBC’s “Squawk Box.” “In principle, I think to propose change in what our rules are now, I think would be a good way forward, and then we’ll consider that and move forward after that.”
The proposed rule would give companies the option to maintain quarterly reporting or switch to a six-month schedule. “For the sake of shareholders and public companies, the market can decide what the proper cadence is,” Atkins said.
Current regulations require quarterly reports, though earnings forecasts remain voluntary. Earlier this week, Trump argued that a semi-annual schedule would “save money, and allow managers to focus on properly running their companies.”
The SEC can adopt the rule change by majority vote. Republicans currently hold a 3-1 majority on the commission, with one seat vacant.
The idea has sparked debate in financial circles.
Critics warn that less frequent reporting could reduce transparency and hurt individual investors who lack the research resources of Wall Street firms. Proponents argue it would reduce the focus on short-term results and free companies to prioritize long-term strategy.
“You have to realize that right now, semi-annual reporting is no stranger to our markets; foreign private issuers do it right now,” Atkins said. “There’s been a lot of discussion of the past few years about how this quarterly reporting kind of emphasizes a short-term type of thinking.”
Some international institutions have already pushed for change.
Earlier this year, Norway’s sovereign wealth fund suggested a switch to semi-annual reports, saying it would encourage long-term corporate planning. The Long-Term Stock Exchange has also voiced support for less frequent disclosures.
If adopted, the rule would bring U.S. companies closer in alignment with their foreign counterparts.
Whether firms ultimately adopt the change, however, may depend on investor expectations and market demand.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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