The US Securities and Exchange Commission (SEC) is working on a proposal that would remove the obligation for listed companies to disclose earnings every quarter, the Wall Street Journal (WSJ) reported.

The plan, if implemented, will allow the companies to publish results twice a year. The proposal could be released as early as next month.

According to the report, the SEC is in dialogue with major stock exchanges over how their listing requirements might need to be revised if the federal rules change.

Once the draft proposal is issued, it will be open for a public comment period that typically runs for at least 30 days. Subsequently, the SEC would hold a vote on whether to finalise the changes.

The WSJ reported that the proposal being considered would let companies opt out of quarterly reporting rather than scrapping it altogether.

This comes after US President Donald Trump renewed his call to end mandatory quarterly reports late last year.

SEC chair Paul Atkins supported that initiative at the time, saying the agency could bring forward a proposal by the end of 2025 or in early 2026.

Established in 1934, the SEC is an independent US federal government agency established to protect investors.

In January, the SEC proposed revising the criteria used to classify registered investment companies, investment advisers and business development companies as small entities.

The amendments would update rules under the Regulatory Flexibility Act, which requires federal agencies to assess and minimise the potential economic impacts of new regulations on small entities.

"US SEC drafts plan to ease quarterly earnings disclosure rules" was originally created and published by The Accountant, a GlobalData owned brand.

 

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