SEC to Advance Semiannual Reporting Proposal Despite Opposition, WSJ Reports

The U.S. Securities and Exchange Commission is expected to move forward with a proposal that would permit public companies to report financial results twice a year instead of quarterly, despite facing significant public opposition, The Wall Street Journal reported on Tuesday.

Widespread Public Opposition

The proposal, which the report said was unveiled by SEC Chairman Paul Atkins in May, has generated a record number of public comments, totaling more than 200,000. The majority of these submissions came from investors, non-profits, academics, and retirement funds.

Opponents argue that reducing the frequency of financial disclosures would weaken market transparency and leave investors with less timely information, potentially increasing market volatility and risk. The core concern is that a six-month gap between reports is too long in modern, fast-moving markets.

Rationale and Supporters

Supporters of the change, including President Donald Trump, contend that it would ease the regulatory burden on publicly listed companies and encourage more firms to go public. The Journal reported that corporate backers include Exxon Mobil Corp. and insurance broker Gallagher.

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These proponents argue that companies are already obligated to disclose any material developments as they occur, outside of the standard reporting cycle. According to the report, Exxon stated that a shift to semiannual reporting would not reduce the availability of critical information for investors.

Next Steps for the Proposal

The SEC is now in the process of reviewing the submissions before they are published on the agency's website, the Journal said. Following this review, the commission is expected to proceed with a formal rule proposal.

While the agency appears poised to advance the initiative, the report noted that the final language of the rule could be revised in response to the extensive feedback received during the public comment period.