Key insights
- The SEC is considering a rule change (S7-2026-15) to shift quarterly reporting to half-yearly. While large companies may not face significant burdens due to existing technology, smaller companies could benefit from reduced reporting frequency. The author suggests a market cap threshold to differentiate reporting requirements, aiming to ease the financial strain on smaller businesses.
You can go to the SEC.gov website or simply Google "SEC rule S7-2026-15" to show a link to click on to post your comment to the SEC concerning this. My own opinion is that the burden for large companies to submit quarterly reports is low because they already have software combined with AI to create these reports. For smaller companies, it is a more costly burden. I proposed a market cap of $50M to relieve this burden on small companies while quarterly remains a rule for large companies. (My $50M number is somewhat of a dart-throw, but based on the value of two startups that I was an employee of which were struggling financially).