SEC Chairman Advocates Minimal Regulation in Financial Reporting
SEC Chairman Paul Atkins supports President Trump's proposal to eliminate quarterly earnings reports, emphasizing minimal regulation. While aimed at allowing businesses to flourish, concerns over transparency and market volatility remain. No timeline was provided for this significant potential shift in U.S. financial reporting practices.
U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins has expressed support for minimal regulation, aligning with President Donald Trump's proposal to eliminate quarterly earnings reports. Atkins articulated this position in an opinion piece published in the Financial Times, emphasizing the importance of balancing investor protection with business freedom.
The SEC currently mandates that publicly listed companies release their financial statements every 90 days, a requirement that some believe hampers business growth. However, the proposal to dispense with quarterly reporting, previously backed by Trump in 2018 and reiterated recently, lacks a clear implementation timeline.
While the initiative aims to foster an environment for businesses to thrive, critics warn it may lead to decreased transparency and heightened market volatility, potentially reducing the attractiveness of U.S. stocks to investors. This debate continues to evoke various stakeholder opinions across the financial sector.
(With inputs from agencies.)
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