Investors urge SEC to keep quarterly reporting as semiannual proposal draws broad opposition

The U.S. Securities and Exchange Commission has closed the comment period on a May proposal that would let public companies satisfy interim reporting obligations with semiannual reports instead of quarterly Form 10-Q filings. Opposition spans institutional investors, hedge fund and mutual fund groups, pension and accounting organizations, retail traders and many corporate finance executives, while some companies including ExxonMobil supported an optional shift or other alternatives. An AI-built database created by Ohio State University accounting professor Tzachi Zach showed 8,080 comment letters as of Tuesday evening, including 7,994 opposed, 34 supportive and 52 conditional, though he said more could still appear because of posting delays. Within 33 public letters from people in active corporate roles, 25 opposed the proposal, two supported it and six were conditional. The SEC has not made a final decision. Critics say cutting interim filings in half would reduce transparency, widen information asymmetry between institutional and retail investors, and delay detection of accounting or performance problems. Supporters say optional semiannual reporting could reduce compliance costs and short-term pressure on executives, especially if companies continue quarterly updates through earnings releases, Form 8-K filings and other channels.