Paul Atkins, chairman of the U.S. Securities and Exchange Commission, said his agency will propose a rule change following President Donald Trump’s call to end earnings reports on a quarterly basis and switch to semiannual.
“I welcome that posting by the president, and I have talked to him about it,” Atkins said on CNBC’s “Squawk Box” Friday. “In principle, I think to propose change in what our rules are now, I think would be a good way forward, and then we’ll consider that and move forward after that.. for the sake of shareholders and public companies, the market can decide what the proper cadence is.”
Current regulations require companies to report earnings on a quarterly basis, though providing forecasts is voluntary. The rules can be changed by just a majority vote on the SEC, where Republicans currently hold a 3-1 voting majority, with one open seat.
Atkins noted that foreign private issuers already adhere to semi-annual reporting.
“You have to realize that right now, semi-annual reporting is no stranger to our markets, foreign private issuers do it right now,” Atkins said. “There’s been a lot of discussion of the past few years about how this quarterly reporting kind of emphasizes a short term type of thinking.”
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This post was originally published on CNBC Markets
