Input Stories

The Securities and Exchange Commission has released a proposal that would allow publicly traded companies to report their financial results twice a year instead of quarterly—and it’s seeking the public’s input.

What’s going on: The draft rulemaking, announced on Tuesday, is part of the agency’s “Make IPOs Great Again” agenda and aims to relax “the rigidity of the SEC’s rules,” SEC Chairman Paul Atkins said in a statement.

• If this proposal is approved, companies could “elect to file semiannual reports on new Form 10-S instead of quarterly reports on Form 10-Q,” the SEC said in a press release. Public companies still would be required to file their year-end reports via Form 10-K.
• Under this proposal, companies could continue to voluntarily release their financial results on a quarterly basis. 

The background: Quarterly reporting has been mandated for U.S. public companies since 1970, but last year, President Trump urged the SEC to review that rule “in part over concerns that such disclosure obligations weigh on the ability for executives to focus on the long-term future.”

• Both the United Kingdom and the European Union no longer mandate quarterly reporting for public companies in their jurisdictions.

The NAM’s take: “Right-sizing regulatory burdens is crucial to helping manufacturers access capital on the public market—empowering our industry to invest, hire and grow,” said NAM Senior Director of Corporate Finance Policy Ted Allen. “Allowing companies the flexibility to move away from a quarterly reporting mandate would be particularly impactful for small and newly public companies, freeing up time and resources so manufacturers can focus on investing for the future.”

• The NAM plans to submit a comment letter on this proposal.

Have suggestions on this proposal or streamlining the SEC’s quarterly filing requirements? Please email Allen at [email protected] by June 8.