SEC Proposal to Change Financial Reporting from Quarterly to Semi-Annual Approved by White House

On May 1, the U.S. Securities and Exchange Commission (SEC) announced that its plan to allow publicly traded companies to reduce the frequency of financial report disclosures from quarterly to semi-annually has passed White House review, bringing it closer to implementation. According to information from government websites, the review was completed earlier this week, allowing the SEC to formally announce the plan and seek public feedback. After receiving comments, the commissioners will need to vote again on the final version before the rule can take effect. Voting typically occurs several months later. Following President Donald Trump’s call last year to change quarterly reports to semi-annual reports, the SEC has been advancing this reform of corporate information disclosure requirements. Since 1970, publicly traded companies in the U.S. have been required to disclose financial information on a quarterly basis.