SEC Chair Defends Proposal to Allow Companies to Report Earnings Twice a Year
The Securities and Exchange Commission (SEC) chair, Paul Atkins, defended the agency's proposal allowing companies to report financial results twice annually instead of quarterly. The rule change aims to provide flexibility for firms like pre-revenue biotechs that struggle with frequent reporting requirements despite limited operational activity. Despite receiving 200,000 comments—99.5% opposing it—the SEC remains committed to the proposal. Critics argue semiannual reports could reduce transparency and enable financial misreporting or insider trading. Atkins clarified that companies can still choose quarterly disclosures if preferred, emphasizing the need for a more tailored approach. The agency is currently operating with three Republican commissioners due to two vacancies, increasing the likelihood of approval despite strong opposition from asset managers and investor advocacy groups.
