Foreign media: U.S. SEC is preparing a proposal to eliminate the mandatory quarterly reporting requirements for companies

【Source: Global Times】

According to The Wall Street Journal on Monday, the U.S. Securities and Exchange Commission (SEC) is preparing a proposal to eliminate the mandatory requirement for companies to report quarterly earnings, allowing companies to choose to release performance reports twice a year.

The report, citing informed sources, states that the proposal could be announced as early as next month. The regulatory agency is in discussions with major exchanges to explore how to adjust related rules. After the proposal is announced, it will enter a public consultation period, which typically lasts at least 30 days, after which the SEC will vote on the proposal.

The report suggests that this rule will make quarterly reports optional rather than completely abolish the quarterly reporting system.

Additionally, supporters of reducing disclosure frequency believe this change could help boost the declining number of publicly listed companies in the U.S. One common reason companies choose to remain private is that going public and maintaining a listing require handling a large amount of time-consuming and costly administrative work. However, any change is likely to face opposition from investors, who rely on regular disclosures for transparency. (Nan Mu)