SEC Proposes Amendments to the Requirements of Rule 10b5-1 Trading Plans
Authors
On December 15, the SEC announced proposed changes to Securities Exchange Act Rule 10b5-1 that, if adopted, would significantly alter an important affirmative defense to insider trading charges brought by the SEC. The current version of the rule, which has been in effect since 2000, provides a means for corporate insiders to sell stock at predetermined intervals in order to avoid the presumption that their trades were made on the basis of material, nonpublic information, and thereby avoid liability under Section 10(b) of the Exchange Act and SEC Rule 10b-5.
Keep Up to Date in a Changing World
Do you want to receive more valuable insights directly in your inbox? Visit our subscription center and let us know what you’re interested in learning more about.
