The U.S. SEC is preparing to propose new regulations that would eliminate the requirement for publicly listed companies to disclose quarterly earnings reports, replacing them with semi-annual disclosure instead.

On Monday, according to media reports citing sources familiar with the matter, the U.S. Securities and Exchange Commission (SEC) is preparing to propose a rule change that would eliminate the requirement for publicly traded companies to disclose quarterly earnings, allowing companies to choose to report only twice a year.

Specifically, it is expected that the new rule will make quarterly financial disclosures optional rather than completely eliminate quarterly reports. The regulatory agency may announce the proposal as early as next month. In preparation for this, the SEC has been in discussions with officials from major exchanges to consider how they might need to adjust their regulations if the rule changes. Once the proposal is announced, there will be a public comment period, which typically lasts at least 30 days. Afterward, the SEC will vote on the proposal.

It is important to note that there is no guarantee that this proposal will ultimately be implemented.

The idea of moving to semi-annual financial disclosures began gaining traction at the end of last year. Some stock exchanges have submitted petitions to the SEC requesting the removal of quarterly reporting requirements. U.S. President Trump and SEC Chairman Paul Atkins have both expressed support for this idea.

For over 50 years, U.S. listed companies have reported earnings every three months. During President Trump’s first term, he briefly explored the possibility of switching to semi-annual disclosures, but no progress was made at that time.

Proponents of reducing disclosure frequency believe that such a change could help boost the declining number of publicly listed companies in the U.S. A common reason for companies to remain private is that going public and maintaining a listing involves a significant 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.

Since the regulatory change in 2013, European listed companies are no longer required to disclose financial results quarterly. The UK also abolished quarterly reporting requirements about ten years ago, although many companies still choose to release quarterly earnings.

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