SEC's Atkins is fast-tracking Trump's proposal to end quarterly reporting

SEC Chair Paul Atkins is advocating for a shift from quarterly to semi-annual corporate reporting, arguing that it would allow market forces to determine reporting frequency based on industry, company size, and investor expectations.

Atkins believes that this change would not reduce transparency but rather promote more relevant market-oriented disclosure practices, moving away from rigid regulatory frameworks.

He criticized European corporate sustainability regulations for being socially relevant yet lacking financial materiality, warning that such mandates could impose additional costs on American investors without meaningful benefits.

Atkins emphasized a commitment to prioritizing investor welfare at the SEC, urging the need to reduce unnecessary reporting burdens to foster market listings and investments in the U.S.

Recommendation Rating: Strong Support for Corporate Reporting Reform

SEC Chair Paul Atkins is expediting President Donald Trump's initiative to modify corporate reporting from quarterly to a semi-annual schedule. This shift is supported by Atkins' vision of implementing a "minimum effective dose of regulation" aimed at safeguarding investor interests.

In a recent op-ed published in the Financial Times, Atkins expressed that the SEC should step back and allow market forces to determine the most effective reporting frequency, taking into account variables such as a company's industry, size, and investor expectations. He emphasized, “The time has come for the SEC to lessen its intervention and permit the market to dictate the optimal reporting intervals.”

Atkins believes that allowing companies the flexibility to report on a semi-annual basis does not compromise transparency. Instead, it redirects focus toward market-oriented disclosure practices that align with the needs of both corporations and their investors, countering rigid regulatory requirements.

Additionally, Atkins criticized Europe's recent corporate sustainability regulations, which, according to him, mandate disclosures that may be socially relevant but lack financial materiality. He argued, “Disclosure should not be swayed by fleeting political trends or skewed agendas,” and cautioned that Europe's sustainability mandates could impose costs on American investors and consumers without substantially improving the information guiding capital decisions.

He further suggested that Europe should prioritize alleviating "unnecessary reporting burdens" to attract more market listings and investments. “In the U.S., my commitment is to ensure that the SEC prioritizes the welfare of investors over the ambitions of ideologues,” concluded Atkins.