SEC to Update Rules on Insider Trading & 10b5-1 Plans

Thoughtware Alert Published: Feb 03, 2022
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Rule 10b5-1 was adopted in 2000 and clarified when a purchase or a sale of a security by a listed company or corporate insider in possession of material nonpublic information (MNPI) may be subject to legal liability and potential enforcement action. A trade is considered on the basis of MNPI—and subject to scrutiny under insider trading restrictions—if the person or entity making the purchase or sale was aware of the MNPI when the trade was executed. This article provides details on an SEC proposal issued December 15, 2021, that would update Rule 10b5-1.

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