U.S. listed companies may bid farewell to the 54-year quarterly reporting system, as the proposal to switch to semiannual financial disclosures has passed White House review.

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The U.S. Securities and Exchange Commission (SEC) has advanced its plan to allow listed companies to reduce quarterly disclosures to twice a year, following White House review.

According to U.S. government websites, the review was completed earlier this week, enabling the SEC to officially release the plan and solicit public comment. After receiving feedback, commissioners typically require several more months before voting again to formally enact the final rule.

Since President Trump called for shifting from quarterly to semi-annual reports last year, the SEC has been working to revise corporate disclosure requirements. U.S. listed companies have been required to disclose information quarterly since 1970.

SEC Chairman Paul Atkins previously pledged to expedite the proposal, stating that this move could save companies significant time and money. However, supporters of the quarterly reporting system believe that transparency helps investors make key decisions and reduces the likelihood of companies hiding bad news.

As the SEC moves to reduce corporate disclosure, some industry groups have issued warnings.

The Investment Company Institute told the SEC that although there is broad support for reducing disclosures to make them more meaningful and effective for investors, reducing the frequency of disclosures while cutting the content poses risks of constraining investment. In a comment letter to the SEC, the association said: "Inconsistent disclosure practices could harm comparability and hinder investors’ informed decision-making."

The Investment Company Institute cited research indicating that after the EU shifted to semi-annual financial reports, companies listed on the Vienna Stock Exchange that adjusted accordingly saw a significant decline in market liquidity, whereas those retaining quarterly reporting requirements were not affected.

The Committee on Capital Markets Regulation has also recently urged the SEC to retain the requirement for reporting key information every quarter, saying this move "helps improve investor decision quality, enhance market efficiency, and lower capital costs." Members of the committee include executives from J.P. Morgan, Fidelity Investments, Robinhood, Virtu Financial, and DRW Holdings. A representative of Bloomberg L.P., the parent company of Bloomberg News, is also a member of the committee.

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