The SEC is being urged to tread carefully as it considers toughening rules that allow executives’ company stock sales without running afoul of insider trading laws.
Corporate executives regularly unload stock through scheduling plans they create under the Securities and Exchange Commission’s Rule 10b5-1. The plans provide a defense against accusations of insider trading, but may help unscrupulous executives cash in on nonpublic, market-moving information.
SEC Chairman Gary Gensler said June 7 the SEC is considering ways to “freshen up” Rule 10b5-1, citing the potential for abuse. The regulation from 2000 places no restrictions on when or how often plans ...