SEC Chairman: "Rapid Move to Allow Listed Companies to Report Results Every 6 Months Instead of 3"

Paul Atkins, SEC Chairman, Contributes Op-Ed to the Financial Times

Paul Atkins, Chairman of the U.S. Securities and Exchange Commission (SEC). Photo by Reuters Yonhap News

The U.S. Securities and Exchange Commission (SEC) is moving to ease regulations by allowing listed companies to choose semiannual reporting instead of being required to report their results quarterly.

Paul Atkins, Chairman of the SEC, announced in an op-ed for the Financial Times (FT) on September 29 (local time) that the SEC is seeking to relax the reporting cycle for U.S. listed companies from the current three months (quarterly) to six months (semiannual).

He stated, "In line with President Trump's proposal, we are rapidly moving to allow companies to opt for semiannual reporting instead of being obligated to report quarterly." He added, "Already, some foreign companies in the U.K. and the U.S. are only required to report semiannually, and they voluntarily announce quarterly results if necessary."

He further emphasized, "The frequency of reporting should be determined by the market according to industry, company size, and investor expectations," and argued, "Quarterly reporting requirements are not an essential element for the vitality of the U.S. capital market."

He stressed, "This is not a retreat from transparency, but rather a contribution to restoring trust through deregulation and investor-focused disclosure."

This announcement comes about two weeks after President Trump suggested on September 15 that the reporting cycle for listed companies should be relaxed from quarterly to semiannual. On his social networking service (SNS), he argued, "SEC approval is needed, but companies should no longer be forced to report quarterly and should be able to report on a semiannual basis."

President Trump's push for deregulating the reporting cycle has been a topic since his first administration. However, at that time, the SEC only considered the issue as a subject of study, emphasizing the need for a balance between investor protection and corporate efficiency.

In his op-ed, Chairman Atkins also stated, "The SEC should require disclosure only of information that is materially significant to investment decisions," criticizing that "disclosures for social change or political purposes do not benefit investors."

He specifically targeted the European Union's Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). The CSRD strengthens disclosure requirements for companies regarding environmental, social, and governance (ESG) information, while the CSDDD imposes legal obligations on companies to prevent, identify, and address human rights and environmental violations throughout their supply chains.

He argued, "While requiring 'double materiality' may be socially meaningful, it is not directly related to investment decisions and causes unnecessary costs," adding, "This could place a burden on U.S. investors and consumers."