Positive Shift in SEC Proposal for Earnings Reporting: Insights from eToro CEO
Yoni Assia, the CEO of eToro, recently shared his views on the U.S. Securities and Exchange Commission’s (SEC) proposal that would allow public companies to opt out of quarterly earnings filings. Speaking at the Milken Institute Global Conference, he described this initiative as part of a broader "Make IPOs Great Again" agenda. Assia believes the proposal will foster innovation and alleviate some historical burdens, thereby enabling businesses to adapt more quickly within the U.S. financial markets.
The SEC Chair, Paul Atkins, unveiled the proposal, which offers companies the option to submit a new Form 10-S biannually instead of the traditional quarterly Form 10-Q. While this flexibility could encourage more private enterprises to seek public listings, Assia emphasises that quarterly reporting should be seen as a fundamental responsibility of publicly traded companies, rather than a cumbersome obligation.
Drawing from personal experience, Assia recalled advice from his father—who had been the CEO of a public company—stressing the importance of keeping shareholders informed every three months. Consequently, Assia indicated his commitment to continue providing shareholders with regular updates, including reports on company performance, balance sheets, and cash flow statements, every 90 days, irrespective of the regulatory changes.
Despite his dedication to frequent reporting, Assia commends the SEC’s efforts under Atkins’s leadership, labelling the developments as "amazing." He argued that easing regulatory demands does not necessarily equate to a reduction in transparency or information availability. Many modern enterprises, including eToro, already share key performance indicators (KPIs) with stakeholders on a monthly basis, suggesting that the SEC’s increased flexibility could enhance how companies communicate their strategic directions.
Concerns among retail investors often centre on the potential for decreased reporting frequency to result in heightened market volatility or unexpected price shifts. However, Assia is not alarmed by this possibility and asserts that established public companies are unlikely to abandon their regular reporting practices. He believes that the real advantage of the SEC’s proposal could be for businesses currently hesitant about going public. He pointed out that the rigid structure of quarterly reporting has historically discouraged many firms from pursuing an initial public offering (IPO).
Assia concluded that an increase in the number of public companies would be beneficial for retail investors, accentuating that a more diverse market landscape could open up new opportunities.
About the Author
Francisco Velasquez is a reporter at Yahoo Finance, where he covers business and financial news. Connect with him on LinkedIn and X or reach him via email at francisco.velasquez@yahooinc.com.
