SEC Approves New Restrictions On Insider Trading By Execs
Howard Berkenblit was quoted in the article "SEC Approves New Restrictions On Insider Trading By Execs," published by Law360 [sub. req.].
The article discusses the SEC's adoption of new disclosures and trading restrictions to crack down on potential abuses of insider trading by executives. Under the final amendment, corporate officers or directors who enter into Rule 10b5-1 trading arrangements would be held to a cooling-off period of up to 120 days before any trading could commence following the adoption of that arrangement. The period will be either 90 days after a plan is adopted or modified, or two business days after certain periodic financial reports are disclosed, whichever is later.
Howard noted that "a cooling off period is currently voluntary and that the new periods are much longer than many current plans use."