11 months ago
SEC Considers Rule Change for Semi-Annual Reporting
Right now, companies in the U.S. have to share how they are doing every three months.
Someone suggested they only report every six months instead.
The SEC is considering this.
Those who support the change think it will allow companies to focus on long-term goals.
Others worry it could hurt transparency.
The SEC chair Paul Atkins said the change would let the market decide the best way to report earnings.
The proposal follows President Trump's call for the change.
The SEC is considering a rule change for semi-annual earnings reporting.
This follows President Trump's call to end quarterly reporting.
SEC Chair Paul Atkins supports the proposal.
If approved, companies can choose reporting frequency.
Critics fear it could hurt transparency and disadvantage retail investors.
- Who
- The U.S. Securities and Exchange Commission (SEC)
- What
- Is considering a rule change on the frequency of financial reporting.
- Where
- The U.S.
- When
- Announced Friday
- Why
- To allow public companies to switch from quarterly to semi-annual earnings reporting.
Proponents of Quarterly Reporting
Proponents of Semi-Annual Reporting
Transparency
Proponents of Quarterly Reporting
Frequent reports provide more information.
Proponents of Semi-Annual Reporting
Less frequent reporting will free up resources and allow companies to focus on long-term growth.
Impact on Investors
Proponents of Quarterly Reporting
Benefits retail investors
Proponents of Semi-Annual Reporting
Market will decide what cadence is best for shareholders
Key facts
- Issue
- Potential change to semi-annual financial reporting.
- Proposed By
- President Donald Trump
- Proponent Argument
- Allows managers to focus on the long term.
- Current Regulator
- U.S. Securities and Exchange Commission (SEC)
- SEC Status
- Considering a rule change.
Quotes
Paul Atkins
SEC Chair
“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.”
CNBC TV 18
“You have to realise that right now, semi-annual reporting is no stranger to our markets, foreign private issuers do it right now.”
CNBC TV 18
