The proposal backed by President Donald Trump would allow companies to submit two financial reports per year instead of four, with supporters arguing the change could reduce compliance burdens and encourage long-term business planning.
By yourNEWS Media Newsroom
The U.S. Securities and Exchange Commission has proposed new rules that would allow publicly traded companies to file semiannual financial reports instead of the quarterly reports currently required under federal securities law.
Under the proposal announced May 5, companies would be permitted to replace the traditional Form 10-Q quarterly reporting structure with a new filing known as Form 10-S.
If adopted, companies choosing the new framework would submit one semiannual report and one annual report each fiscal year instead of three quarterly reports and one annual report.
“As a result, companies that elect to file semiannual reports would file one semiannual report and one annual report for each fiscal year in lieu of three quarterly reports and one annual report,” the SEC said in a statement announcing the proposal.
“The flexibility provided under proposed amendments would enable public companies to choose the interim reporting frequency that would best serve the company and its investors.”
The proposal would also amend Regulation S-X, which governs financial statement requirements tied to periodic reporting and securities registration filings.
According to the SEC, companies electing to use Form 10-S would be required to submit the filing within 40 or 45 days after the end of the first six-month period of the fiscal year, depending on filer classification.
President Donald Trump has publicly supported reducing the frequency of corporate reporting requirements, arguing that quarterly reporting encourages short-term decision-making and distracts executives from long-term business management.
“Companies and Corporations should no longer be forced to ‘Report’ on a quarterly basis (Quarterly Reporting!), but rather to Report on a ‘Six (6) Month Basis,’” Trump wrote in a Truth Social post referenced in the SEC discussion.
“This will save money, and allow managers to focus on properly running their companies.”
Trump also contrasted American corporate practices with longer-term planning approaches he attributed to China.
“Did you ever hear the statement that, ‘China has a 50 to 100 year view on management of a company, whereas we run our companies on a quarterly basis???’ Not good!!!” Trump wrote.
The debate over quarterly reporting dates back years and intensified during Trump’s first administration when then-SEC Chairman Jay Clayton launched a formal review examining the advantages and disadvantages of mandatory quarterly filings.
Economists participating in that review concluded in a 2018 paper that quarterly disclosures increase transparency and reduce the cost of capital for businesses seeking financing. However, the report also warned that frequent reporting can encourage excessive focus on short-term financial targets at the expense of broader strategic planning.
Current SEC Chairman Paul S. Atkins said the new proposal is intended to modernize regulations and provide companies with greater flexibility in determining how often they disclose financial information to investors.
“Public companies have an obligation under the federal securities laws to provide information that is material to investors,” Atkins said in a May 5 statement.
“Yet, the rigidity of the SEC’s rules has prevented companies and their investors from determining for themselves the interim reporting frequency that best serves their business needs and investors.”
“Atkins said the proposal forms part of his broader “Make IPOs Great Again” initiative designed to encourage more companies to enter public markets.
The proposal has also generated criticism from financial analysts and investor advocacy groups concerned that reducing reporting frequency could limit transparency and weaken market efficiency.
In a September 2025 analysis, the CFA Institute argued that quarterly financial reports provide valuable information to both short-term and long-term investors and warned that reducing disclosures could negatively affect market pricing and investor decision-making.
“It is nearly axiomatic that, in most applications, more data is preferable to less,” the organization wrote in a blog post discussing the issue.
The CFA Institute also warned regulators to consider the potential economic consequences of reduced transparency and diminished market efficiency.
The Investment Company Institute similarly urged caution in changing disclosure standards.
In a May 5 statement, the organization said regulators should balance efforts to reduce compliance costs with the need to preserve investor confidence and reliable market information.
“Both the cadence of reporting and its content play meaningful roles in ensuring that investors receive consistent updates on company performance,” the institute said.
“ICI supports a thoughtful review of disclosure requirements to ensure that investors receive decision-useful information. Well-calibrated disclosure will always be essential for investors.”
The SEC proposal will now enter a public comment period before any final rule changes are considered.