US President Donald Trump’s proposal to shift from quarterly to semi-annual financial reporting for companies is gaining traction, according to some Wall Street observers. The current quarterly reporting format could be replaced with a six-month schedule. This potential change has sparked debate among financial experts regarding its feasibility and impact on the market.
Jaret Seiberg, managing director at TD Cowen, believes this could be an “easy policy win” for SEC Chairman Paul Atkins, aligning with a deregulatory focus. Seiberg noted that it would likely take at least six months for staff to develop a proposal and gather the necessary economic data for the rule change to withstand judicial review. Sarah Bianchi, senior managing director at Evercore ISI, suggests that Atkins will have the latitude to initiate a standard SEC process, acknowledging presidential authority over the commission.
However, not all analysts agree on the likelihood or practicality of the change. Ed Mills, a Washington policy analyst at Raymond James, points out that quarterly reporting is mandated by the Exchange Act of 1934. Mills said he does not anticipate Congress altering that requirement, particularly given recent efforts to strengthen reporting standards through legislation such as Sarbanes-Oxley. He also noted the existing requirements for public companies to disclose material information relevant to investors’ decisions.
