The U.S. Securities and Exchange Commission (SEC) has officially proposed a rule change that would allow public companies to move from quarterly financial reporting to a semiannual schedule. This move marks one of the most significant shifts in American corporate disclosure requirements in decades.
According to SEC Chair Paul Atkins, the current quarterly system often forces executives to focus on immediate profit targets at the expense of sustainable, long term growth. The proposal introduces a flexible framework where companies can elect to file a new Form 10-S twice a year instead of the traditional Form 10-Q every three months. Businesses would be allowed to make or revoke this election on an annual basis.
While the primary goal is to reduce “short-termism” and lower compliance costs for smaller firms, the plan faces scrutiny. Institutional investors express concerns that less frequent updates could lead to increased market volatility and a lack of transparency during periods of economic instability.