The Securities and Exchange Commission has proposed amendments that would allow public companies to file financial reports every six months instead of the traditional quarterly schedule. The move, announced earlier this week, has drawn both praise and caution from the wealth management industry, as advisors assess how reduced reporting frequency might affect their research and client communications.
SEC Chairman Paul Atkins, in a statement supporting the proposal, cited the “rigidity” of current rules and argued that the change would offer companies greater regulatory flexibility. The proposal aligns with longstanding calls from President Donald Trump, who has promoted semiannual reporting on his Truth Social platform as a cost-saving measure that would let managers focus on long-term strategy. JPMorgan Chase CEO Jamie Dimon also backed the idea in an October 2024 Bloomberg interview, warning that quarterly earnings pressure can distort executive decision-making.
Commissioner Hester Peirce offered a nuanced view, suggesting that some companies might benefit from a slimmer quarterly disclosure requirement even if they do not fully adopt semiannual filings. The Investment Company Institute, which represents asset managers, applauded the proposal, stating that the quality of information matters more than its frequency.
Advisors on the ground, however, are divided. Richard Reyle, co-founder of Questar Capital Partners, a registered investment advisor based in Paramus, New Jersey, told InvestmentNews he is not overly concerned. “Companies that are honest reporters are going to be honest reporters if they do it quarterly or semi-annually,” he said. Monish Verma, CEO and co-founder of Vardhan Wealth Management in Farmington Hills, Michigan, echoed that sentiment, noting he sees no major concern but would like more data on the actual benefits for clients and advisors. Verma suggested the SEC trial the new schedule for three years to evaluate its impact.
Jay Dubow, a partner at Troutman Pepper Locke and co-lead of the firm’s securities investigations and enforcement practice, warned that the shift could be burdensome for advisors accustomed to quarterly data. “It could be especially burdensome to financial advisors if some companies remain as quarterly filers while peers elect to report semi-annually, as it will make comparisons more difficult,” he told InvestmentNews. Dubow added that advisors might need to work harder to obtain supplementary information, potentially reducing transparency.
The proposal comes amid broader industry efforts to leverage technology for research efficiency. For example, Morningstar, Perplexity, and Plaid Integrate to Streamline Advisor Research with AI, highlighting how firms are seeking tools to manage data more effectively. Meanwhile, regulatory scrutiny of alternative investments continues, as seen in the SEC and Global Regulators Intensify Scrutiny of $2 Trillion Private Credit Market, a sector that often relies on less frequent reporting.
If adopted, the rule would represent the most significant change to corporate reporting cadence in decades. Advisors will need to adapt their research processes and client conversations, particularly if only a subset of companies opts for semiannual filings, creating a two-tier information environment. The SEC is accepting public comments on the proposal before any final rulemaking.
