Overview
- The Securities and Exchange Commission, which unveiled the plan Tuesday, opened a 60-day comment period on an optional shift to twice-yearly financial reporting.
- Companies that opt in would file a new Form 10-S covering six months and a 10-K each year, replacing three 10-Qs, with deadlines set at 40 or 45 days depending on filer status.
- The plan requires an auditor review of the six-month financials and continued Form 8-K updates for material events, and companies would elect the cadence each year with the option to switch the next year.
- Supporters such as JPMorgan and Nasdaq say fewer filings would cut costs and reduce short-term pressure, while investor groups warn of less visibility for shareholders and more room for insider trading.
- The effort follows President Donald Trump’s push to ease reporting cadence and reflects practices used in Europe and Australia, and any final rule would come only after the SEC’s full rulemaking process.