Trump's Proposal to Change Financial Reporting Faces Renewed Push

Paul Atkins, chair of the U.S. markets regulator, supports President Trump's proposal to change the financial reporting standard from quarterly to semi-annual reports. This move aims to reduce costs and discourage shortsightedness in decision-making. The SEC is more aligned with this proposal now, increasing its chances of implementation.

Paul Atkins, the chair of the U.S. markets regulator, has endorsed President Donald Trump's proposal to reduce the frequency of corporate financial reporting from quarterly to semi-annual. This comes as an attempt to lower costs and shift focus from short-term gains to long-term strategies, as detailed in a Financial Times editorial.

Previously, the SEC had opted to maintain the status quo despite Trump's initial push in 2018. However, now with the White House aligning more closely with the SEC, there's renewed momentum for the change, which could significantly alter the landscape of financial reporting in the U.S.

Critics, including transparency advocates, warn that less frequent reporting could diminish market transparency and increase volatility. Despite this, some investors see benefit in the proposed shift, arguing that the U.S.'s rigorous standards ensure a premium for its stocks.

(With inputs from agencies.)