For 55 years, US public companies have filed quarterly reports like clockwork. The SEC now wants to make that optional, and investors across the spectrum are telling the regulator that’s a terrible idea.
The pushback is coming from an unusual alliance. Institutional heavyweights and retail investor communities are finding themselves on the same side, arguing that reducing mandatory filings from four times a year to two would gut the transparency mechanisms that keep corporate management honest.
What the SEC is proposing
On May 5, the SEC issued proposed amendments that would allow public companies to swap their traditional quarterly Form 10-Q filings for a new document called Form 10-S. Under this framework, companies would only need to file one semiannual report alongside their annual report, cutting mandated interim disclosures in half.
The proposal is currently in a public comment period, with no final decision made yet.
