SEC moves to cut quarterly reporting obligations of public firms

The Securities and Exchange Commission (SEC) has formally proposed a rule that would allow public companies to replace quarterly earnings with semiannual reporting.

Chairman Paul Atkins announced the formal proposal on Tuesday.

The move, strongly supported by President Donald Trump, has entered a 60-day public comment period, after which the rules can be officially adopted by a majority vote of the SEC.

Critics say such a rule change would diminish transparency for retail investors, who rely on a firm’s public disclosures to make trades.

Trump has previously said that shifting to a semiannual reporting system would cut costs and encourage businesses to focus on long-term goals rather than short-term returns.