Overview
Investment professionals are largely opposed to a Securities and Exchange Commission plan that would permit U.S. public companies to file financial reports every six months instead of quarterly, according to a CFA Institute survey published on Wednesday. The survey recorded widespread concern among analysts and portfolio managers about the potential consequences of reducing mandatory reporting frequency.
Survey findings
Nearly two-thirds of the participating investment analysts and portfolio managers indicated that the SEC should retain mandatory quarterly reporting for public companies rather than move to a semiannual schedule. The survey also showed that roughly 70% of respondents were against a framework that would allow companies to set or change their own reporting frequency.
Concerns about comparability were especially prominent: almost 85% of respondents said they worried about the impact on comparability between companies if both frequency and format of reporting became flexible. The survey further found that support for switching to semiannual reporting diminished when the proposal was framed as applying only to smaller or recently listed firms, compared with adoption across the full universe of public companies. Regardless of firm size, investors cited similar comparability and complexity issues.
Comments from industry figures and policy background
Matthew Winters, a senior director at the CFA Institute, emphasized the global investor view in a statement, saying that investors around the world "continue to view quarterly reporting as an essential feature of transparent, efficient, and trustworthy capital markets."
The SEC published the semiannual reporting proposal in May. Under the plan, companies could stop submitting quarterly financial reports and would instead file twice a year. The proposal would still allow companies the option to hold quarterly earnings calls and to issue guidance on performance.
President Donald Trump requested the change in September, arguing that a six-month reporting cadence would lower costs for companies and allow managers to focus more on business operations. The proposal mirrors a concept he advanced during his previous term; the SEC considered a similar idea in 2018 but did not adopt any changes at that time.
Support and opposition
Proponents of reduced reporting frequency, including Nasdaq, have contended that filing less often could reduce administrative time and expense for businesses and enable executives and boards to concentrate on longer-term performance rather than short-term quarterly metrics. Opponents, as reflected in the CFA Institute survey responses, warned that flexible reporting schedules and formats could introduce complexity and impair comparability across companies, potentially affecting investor decision-making.
Implications
The survey highlights a clear divide between regulatory proposals aimed at lowering burdens on companies and investor preferences for frequent, standardized disclosures. The findings suggest that many market participants remain wary of changes that could complicate cross-company analysis and weaken the transparency they consider fundamental to efficient capital markets.