Atkins said if the rule change is approved, companies will be free to decide whether to switch to semiannual reporting or continue quarterly disclosures.
“For the sake of shareholders and public companies, the market can decide what the proper cadence is,” he said.Current regulations require publicly traded companies to report earnings every quarter, though providing forecasts is voluntary. Trump earlier this week advocated switching to a six-month schedule, saying it would “save money, and allow managers to focus on properly running their companies.”
The SEC can change the rules with a majority vote. Republicans currently hold a 3-1 majority on the commission, with one seat vacant.
Critics argue that less frequent reporting would hurt transparency and disadvantage retail investors, while proponents say it would reduce short-term pressure and let companies focus on long-term growth.
“You have to realise that right now, semi-annual reporting is no stranger to our markets, foreign private issuers do it right now,” Atkins said. He noted that Norway’s sovereign wealth fund and the Long-Term Stock Exchange have supported similar proposals in recent years.
(With inputs from CNBC International)
