The Securities and Exchange Commission (SEC) plans to allow US-listed companies to report financial results only twice a year instead of quarterly, marking a potential major shift in disclosure rules, according to a proposal.
The proposal, released on Tuesday, will enter a 60-day public comment period. After that, the regulator could adopt the changes through a vote.
US President Donald Trump had previously supported scrapping quarterly reporting requirements.
SEC Chair Paul Atkins said the current system did not allow companies and investors enough flexibility to decide how often financial results should be disclosed. He cited factors such as reporting costs, business models and a company's stage of development.
The move toward semi-annual reporting would be an initial step in broader reforms of rules governing listed companies, Atkins said.
Quarterly reporting has long been debated. Critics argue it encourages corporate management to focus on short-term results, while supporters say it improves transparency, particularly for private investors.
