March 16 - The U.S. Securities and Exchange Commission is preparing a proposal that would give publicly traded companies the option to publish financial results twice a year instead of filing quarterly earnings reports, according to a report cited on Monday. The plan is described as making quarterly reporting optional rather than abolishing it entirely.
According to the report, the proposal could be released as soon as next month. Regulators are reportedly engaged in talks with major stock exchanges to consider how existing rules would need to be modified to accommodate the change.
Sources cited in the report said the anticipated rule would not force companies to stop issuing quarterly results, but would allow firms the discretion to move to semiannual reporting if they choose. The discussion with exchanges reflects the need to align filing requirements and exchange regulations should the proposal proceed.
The Securities and Exchange Commission did not immediately respond to a request for comment, and the report could not be independently confirmed. Those caveats were highlighted in the reporting that first described the proposal.
The report also noted that late last year the U.S. president renewed calls for ending quarterly reporting by companies, and that the SEC chair said the regulator was fast-tracking the initiative. Those statements were presented as context for the renewed attention to the cadence of corporate financial disclosures.
Context and next steps
At this stage, the plan is described as a proposal under preparation; publication of a formal rulemaking document would be a subsequent step. Conversations with major exchanges are reportedly under way to determine what rule adjustments might be necessary if the proposal advances.
Reporting status: The measure is framed as an option for companies, not a mandate that would remove quarterly disclosures for all issuers.