Executive Stock Sales Face More Scrutiny as SEC Tightens Rules

Executive Stock Sales Face More Scrutiny as SEC Tightens Rules

December 20, 2021, Bloomberg Law

Brian Rosenzweig was quoted by Bloomberg Law regarding a proposed rule by the SEC that would establish a roughly four-month period between when executives can schedule a trade and then sell their stock, in order to take advantage of a safe harbor from enforcement and require companies to disclose executives’ trading plans in quarterly reports.

According to Brian, “The proposed rule is a ‘big deal’ and would limit an SEC enforcement shield that company officials can use to sell stock quickly with little oversight.” Brian continued, stating, “Most companies only impose about a one-month waiting period on their executives and disclose little information about their trading arrangements under current rules.”

Brian concluded by stating “It’s going to make them think harder about setting them up.”