The agency’s first major disclosure overhaul in decades would let firms replace three quarterly filings with a single mid-year report, dividing markets between efficiency advocates and investor-protection watchdogs.
The SEC has unveiled a proposal that would allow publicly traded companies to file earnings reports twice a year rather than four times, marking a significant potential change to the agency’s disclosure regime in more than half a century. Under the plan, firms that elect semiannual reporting would substitute one mid-year report for the three quarterly filings currently required, while still submitting an annual report.
Chairman Paul Atkins, who vowed to fast-track the measure after President Trump called to end mandatory quarterly reporting, framed the proposal as an effort to provide companies with “increased regulatory flexibility.” Atkins described it as the opening step in a broader review of public-company obligations spanning both ongoing disclosure and capital-raising rules.
Proponents, including Nasdaq, argue the change would reduce compliance costs and allow executives and boards to concentrate on longer-term strategy rather than hitting near-term financial targets. An SEC official emphasized that nothing in the proposal would prevent companies from continuing to hold quarterly earnings calls or issue forward guidance on a three-month cadence.
Critics are less convinced. Investor advocates warn that less frequent mandatory filings could allow companies to obscure deteriorating performance for longer periods, and raise the risk of insider trading by widening the information gap between management and the public. Analysts also note that companies may have commercial incentives to retain quarterly reporting, since those cycles create more frequent trading windows that help executives manage insider-trading compliance.
Industry groups representing both sides of the debate are urging the SEC to proceed carefully. The Investment Company Institute stressed that the quality of disclosures matters more than their frequency, calling for a balance between reducing unnecessary compliance costs and preserving the framework that underpins investor confidence. The Managed Funds Association, which represents hedge funds and private equity, cautioned against making piecemeal changes that could create information gaps harmful to market efficiency, and urged a holistic review of the overall disclosure regime.
The proposal is open for public comment for 60 days. If ultimately adopted, a process that typically takes 18 months to two years under standard rulemaking, it would represent the most consequential shift in how American public companies communicate with shareholders since quarterly reporting became mandatory decades ago.