SEC's Plan to Reduce Financial Reporting Frequency Advances

The U.S. Securities and Exchange Commission (SEC) has moved closer to implementing a plan that would allow publicly traded companies to reduce their financial reporting frequency from quarterly to semi-annually. According to PANews, this plan has passed a White House review, marking a significant step towards its implementation. The review was completed earlier this week, enabling the SEC to officially announce the plan and seek public feedback. After receiving comments, the SEC commissioners will need to vote on the final version of the rule, which typically occurs several months later. U.S. President Donald Trump had called for the change from quarterly to semi-annual reporting last year, prompting the SEC to pursue this reform of corporate disclosure requirements. Since 1970, U.S. publicly traded companies have been required to disclose financial information on a quarterly basis.