11 months ago
SEC to Fast-Track Trump's Quarterly Reporting Proposal
The head of the US Securities and Exchange Commission (SEC) is moving forward with a plan suggested by Donald Trump.
This plan would let companies choose to report their financial results twice a year instead of every three months.
The SEC wants to reduce costs and allow companies to focus on long-term goals instead of short-term profits.
The change has been debated for a long time.
The original rule requiring quarterly reports was put in place after a stock market crash in 1929.
Some people think the current rules cause companies to make decisions for quick gains, while others think the current transparency is good for investors.
SEC is fast-tracking Trump's proposal to end quarterly reporting for many firms.
Companies may be given the option to report financial results semi-annually.
Paul Atkins stated that the change is not a step back from transparency.
The SEC mandated quarterly reporting in 1970.
The aim is to let the market decide the optimal reporting frequency
- Who
- Paul Atkins and Donald Trump
- What
- Plan to change how often companies report financial results
- Where
- United States
- When
- Proposal made earlier this month
- Why
- To potentially reduce costs, encourage long-term investment, and address investor overreaction.
Key facts
- Subject
- Proposal to end quarterly results reporting
- Proponent
- Donald Trump
- SEC Chairman
- Paul Atkins
- Current Reporting Mandate
- Quarterly since 1970
- Potential Change
- Semi-annual reporting
Quotes
Paul Atkins
Chairman of the US Securities and Exchange Commission
“Giving companies the option to report semi-annually is not a retreat from transparency, It is time for the SEC to remove its thumb from the scales and allow the market to dictate the optimal reporting frequency based on factors such as the company’s industry, size and investor expectations.”
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