A proposal by the Securities and Exchange Commission to allow listed companies to scale back quarterly reporting to twice a year has advanced after clearing a White House review.
According to a government website update earlier this week, the completed review paves the way for the SEC to formally introduce the proposal and open it up for public comment. Once feedback is gathered, commissioners would be expected to hold another vote—typically several months later—before a final rule can be adopted.
The initiative is part of a broader effort by the agency to overhaul corporate disclosure requirements, following a call last year by Donald Trump to move from quarterly to semiannual reporting. Public companies in the US have been subject to quarterly reporting obligations since 1970.
SEC Chairman Paul Atkins has previously pledged to accelerate the proposal, noting that the shift could help companies save substantial time and costs. However, supporters of the current quarterly system argue that frequent disclosures enhance transparency, support investor decision-making, and limit the risk of companies concealing unfavorable developments.