US SEC Chair Floats Market-Driven Reform of Financial Disclosure Rules

Key Takeaways:SEC Chairman Paul Atkins says reforms to financial disclosure rules for listed companies are on the horizon.The frequency of corporate reporting may be determined by the market, with shareholders and creditors playing a key role.No fixed timetable for reform has been provided.U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins has indicated that the regulator will pursue reforms to the financial reporting requirements for listed companies, potentially allowing market forces to shape disclosure frequency.Speaking with CNBC, Atkins explained that the pace and frequency of disclosures could ultimately be decided by shareholders and creditors, reflecting the needs of market participants rather than a rigid regulatory framework.While Atkins confirmed that the SEC is preparing reforms, he did not provide a timeline for implementation, leaving uncertainty over when such changes may take effect.