• SEC Chair Paul Atkins indicates the agency is working on a proposal to potentially shift from mandatory quarterly to semiannual financial reporting.
  • The move, supported by President Trump, is framed as a deregulatory effort to reduce compliance costs and encourage long-term corporate strategy.
  • Investor advocacy groups, including the CFA Institute, oppose the change, warning it could reduce transparency and increase information asymmetry.

In a significant potential overhaul of corporate disclosure rules, U.S. Securities and Exchange Commission Chair Paul Atkins suggested that the market should help determine the proper cadence for financial reporting. The remarks, made on September 17, 2025, signal that the agency is actively working on a proposal that could move the U.S. away from its longstanding quarterly reporting system, established in 1970, toward a semiannual schedule.

This initiative aligns with a broader deregulatory push from the Trump administration. President Trump has publicly advocated for the change, arguing it would save companies money and free executives to focus on long-term strategic goals rather than short-term metrics, part of an effort to "make IPOs great again." A final rule would require approval from the full commission and a public comment period.

However, the effort has hit a snag with institutional investors and transparency advocates. The CFA Institute and other investor groups have voiced strong opposition, contending that quarterly reports are essential for market discipline and transparency. They warn that reducing the frequency of reporting could widen information asymmetry, ultimately harming investor protection. This skepticism is bolstered by research from the United Kingdom, which eliminated mandatory quarterly reporting in 2014. Studies there found the change did not lead to a meaningful increase in long-term corporate investment, though it did alter analyst coverage and reporting practices.

Efforts to reach the SEC's office of public affairs for further comment on the timeline for a proposal were not immediately successful. The agency, under Chair Atkins who was appointed in April 2025, has prioritized a deregulatory agenda. This includes modernizing disclosure requirements and expanding capital access for smaller companies, with newly named chief accountant Kurt Hohl likely to be deeply involved in shaping any new reporting framework.

The debate now centers on whether the potential cost savings for corporations outweigh the risks of reduced information flow to the market. Without the timely data provided by Form 10-Q filings, investors may find it more difficult to make informed decisions, potentially altering the risk profile of U.S. equities. For now, the market awaits a formal proposal, which would kick off a contentious and closely watched rulemaking process.