SEC Approves New Restrictions on Insider Trading By Execs
Law360
Law360
Jina Choi spoke to Law360 about the U.S. Securities and Exchange Commission (SEC) unanimously adopting new disclosures and trading restrictions to crack down on potential abuses of insider trading by executives.
According to Jina, the final 10b5-1 rule is a positive development in an area that has needed updates. She added that it’s not good to have cynicism surrounding the 10b5-1 plans, and it’s important that people have faith in the system and don’t view it as rigged, and she highlighted that the rule’s disclosure requirements as particularly impactful, saying such requirements can shape behavior.
Jina added that the SEC is strongest when it acts unanimously in passing rules, and said the new rule is “a sign that our government is working, our commission is working.”
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