SEC Pushes Ahead with Plan to Eliminate Quarterly Earnings Reports Despite 200,000 Opposition Comments

By: rootdata|2026/07/17 17:39:00

[Mexico City = Shim Young-jae, Correspondent] The U.S. Securities and Exchange Commission (SEC) is reportedly moving forward with a proposal to change the requirement for publicly traded companies to disclose quarterly earnings from a mandatory obligation to an optional one. Over 200,000 comments have been received from investors, academia, pension funds, and corporations, with the majority expressing opposition. However, it is expected that the SEC will continue to pursue the reform by modifying certain aspects of the proposal. If implemented, U.S. companies would no longer be required to report earnings quarterly but could instead disclose financial statements biannually.

Over 200,000 Comments Received... Most Say "Investors Will Suffer"

According to the Wall Street Journal (WSJ) on the 17th (local time), the SEC is expected to continue pushing for regulatory changes to ease the obligation for quarterly financial reporting. This reform is based on a proposal released by SEC Chairman Paul Atkins in May.

The proposal allows publicly traded companies to choose to disclose financial statements every six months instead of the current requirement of every three months.

U.S. President Donald Trump has long argued that the obligation to disclose quarterly earnings leads companies to focus on short-term results rather than long-term investments. He had considered this proposal during his first term in office.

According to the WSJ, the SEC received over 200,000 comments during the feedback process, marking one of the highest numbers of comments ever received in SEC history.

Sources familiar with the matter told the WSJ that the SEC is reviewing the comments received and will proceed with a process to publish them on its website. While there may be some modifications to the final regulations, it is highly likely that the reform will continue to be pursued.

Investors Warn "Information Will Decrease and Fraud May Increase"

Most of the comments received were against the regulatory changes.

The WSJ reported that at least 20,000 comments were similar to a citizen campaign advocating for the maintenance of quarterly disclosures. Another approximately 40,000 comments expressed concerns that "this proposal limits investors' access to corporate information, creates opportunities for companies to operate opaquely, and could increase fraud."

Opposition came not only from individual investors but also from non-profit organizations, pension funds, and academia.

Lori Amann, who introduced herself as a public school teacher, stated in her comment that "teachers report grades quarterly so that parents can verify their children's academic achievements," arguing that "companies should maintain the same level of transparency."

Emily McFadden, co-founder of the pediatric cancer non-profit Little Warrior Foundation, also emphasized the importance of quarterly earnings reports.

She explained that through quarterly reports, they were able to confirm that a supplier for clinical trial components was experiencing losses, thus avoiding a situation where donations could be misused.

McFadden stated, "Without this information, donations could have been misused, and there would have been no way to turn back time for children fighting cancer."

Some Companies, Including ExxonMobil, Support the Proposal

There were also some supportive comments.

According to the WSJ, ExxonMobil and insurance brokerage Gallagher submitted letters in support of the SEC's proposal.

Gallagher even suggested reviewing a system of disclosures three times a year.

ExxonMobil argued that "companies disclose important information separately when it arises during the quarter," asserting that "even if the reporting is switched to biannual, investors will not miss out on important information."

This discussion gained momentum after the Long-Term Stock Exchange officially petitioned the SEC to eliminate the obligation for quarterly disclosures last year.

The WSJ noted that President Trump publicly supported the petition shortly after it was filed.

Proponents argue that reducing the burden of quarterly disclosures would lower regulatory costs for publicly traded companies and increase the number of companies maintaining or going public in the U.S.

Europe Has Already Shifted to Biannual Disclosures

The easing of quarterly disclosures is not just a discussion in the U.S. According to the WSJ, the European Union (EU) abolished the obligation for quarterly earnings disclosures for publicly traded companies through regulatory changes in 2013.

The UK also eliminated the obligation for quarterly disclosures about ten years ago. However, many companies still voluntarily provide quarterly sales or operational updates to investors.

According to FactSet, companies like Nestlé and Roche Holding are currently examples of firms that primarily disclose biannual earnings.

The market believes that how much the SEC modifies the final regulations will significantly impact the disclosure system of the U.S. capital market and the way companies disclose information.

-- Price

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