SEC advances Trump-backed proposal to end mandatory quarterly earnings reports
CNBC • • business
Key Points:
- The SEC has proposed a rule change allowing public companies to replace quarterly earnings reports with semiannual disclosures on a new form 10-S, while still requiring a full annual report.
- SEC Chairman Paul Atkins stated that the current rigid reporting rules limit companies and investors from choosing the most suitable interim reporting frequency for their needs.
- The proposal aligns with President Donald Trump's long-standing advocacy to reduce quarterly reporting, aiming to shift focus from short-term results to long-term business strategy and cost savings.
- Critics argue that less frequent reporting could reduce transparency and disadvantage retail investors, whereas supporters believe it could promote better investment decisions and strategic planning.
- The SEC’s proposal will undergo a 60-day public comment period before a potential majority vote to implement the rule change.
