SEC to Propose Next Month the Elimination of Quarterly Reporting Requirement

BlockBeats News, March 17th, according to The Wall Street Journal, sources revealed that the U.S. Securities and Exchange Commission (SEC) is planning a proposal to eliminate the requirement for public companies to report earnings quarterly and instead allow companies to disclose their performance semiannually. The regulatory agency could announce the proposal as early as next month. To prepare for the proposal, the regulator has been in discussions with officials from major exchanges to explore adjustments that may be necessary to the relevant rules. Once the proposal is made public, it will enter a public comment period, which typically lasts at least 30 days, after which the SEC will vote on the proposal.

It is expected that this rule will make quarterly reporting optional rather than eliminate quarterly reports altogether. Last September, there were reports that the Long-Term Stock Exchange had petitioned the SEC to scrap the quarterly financial reporting requirement. Within days, both Trump and SEC Chairman Clayton expressed support for the idea. For over 50 years, U.S. public companies have been disclosing their performance every three months. (FX678)