TechFlow reports that on May 1, the U.S. Securities and Exchange Commission’s (SEC) plan to allow public companies to reduce their financial reporting frequency from quarterly to semiannual has cleared White House review, bringing it one step closer to implementation. According to information on the U.S. government website, this review was completed earlier this week, enabling the SEC to formally announce the proposal and solicit public comments.
After receiving feedback, commissioners must vote again on the final rule before it can take effect—typically several months later. The SEC has been advancing this initiative to reform corporate disclosure requirements since former President Trump called last year for shifting from quarterly to semiannual reporting. Since 1970, U.S. public companies have been required to disclose financial information on a quarterly basis.
